Zillow Group C Extends Losses To 4.66% As Technicals Signal Bearish Momentum

Zillow Group C (Z) declined 1.70% in the most recent session, extending its two-day loss to 4.66%. This analysis employs multiple technical frameworks to assess the stock’s current dynamics and potential future trajectory.
Candlestick Theory
Recent candlestick patterns reveal heightened selling pressure. The September 9 session formed a bearish engulfing pattern (high: $89.63, close: $87.19), followed by a long upper wick on September 10 (high: $88.92, close: $85.71), indicating rejection of higher prices. Key support resides near $85.50, aligning with the September 5 low of $85.39. Resistance is evident at $89.00–$90.00, reinforced by the September 8 peak of $91.93. A sustained break below $85.50 could trigger a deeper correction toward $82.00.
Moving Average Theory
The 50-day moving average (MA) near $85.50 currently acts as pivotal support. The price recently crossed below the 50-MA after the two-day decline, suggesting near-term bearish momentum. Longer-term trends remain positive, with the stock holding above the 100-day MA (~$81.00) and 200-day MA (~$75.00). However, a confirmed break below the 50-MA may accelerate selling pressure, potentially testing the 100-MA. Confluence at $85.50 (price support + 50-MA) makes this a critical inflection point.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bearish crossover, with the MACD line dipping below the signal line, indicating rising downward momentum. Meanwhile, the KDJ oscillator (particularly the %K and %D lines) has entered oversold territory (sub-30), suggesting potential short-term exhaustion in selling pressure. This divergence—bearish MACD but oversold KDJ—creates ambiguity, though the MACD’s trend signal currently holds greater weight for intermediate direction.
Bollinger Bands
Volatility expanded during the recent decline, with the price touching the lower Bollinger Band (20-day SMA: ~$86.00, bands at ±2σ). This typically signals an oversold condition. The band width remains moderate, lacking extreme contraction (which would suggest an imminent breakout). A rebound from the lower band could target the mid-band ($86.00), while a close below may extend the downtrend.
Volume-Price Relationship
Volume patterns validate weakening bullish conviction. The September 8 rally to $89.90 occurred on high volume (4.22M shares), but subsequent declines on September 9–10 saw volumes of 1.88M and 1.95M, respectively—below the 10-day average (~2.5M). This divergence (price down on declining volume) suggests limited capitulation, potentially easing selling pressure. However, absence of accumulation volume during rebounds undermines recovery prospects.
Relative Strength Index (RSI)
The 14-day RSI currently reads ~45, retreating from overbought levels (>70) but remaining neutral. While not yet oversold (<30), its downward trajectory from 65 aligns with the price correction. The lack of bullish RSI divergence (e.g., higher lows against price) suggests the current downtrend may persist. Traders should monitor for oversold signals near 30, which could foreshadow a reversal.
Fibonacci Retracement
Applying Fibonacci to the uptrend from the November 2024 low ($58.68) to the September 2025 high ($91.93), key retracement levels emerge. The 23.6% level at $84.08 aligns with recent support near $85.50. A decisive breach targets the 38.2% retracement ($79.23) and the 50% level ($75.30). Confluence between the 23.6% Fib and the 50-MA reinforces $84.08–$85.50 as a make-or-break zone for bulls.
Concluding Insights
Technical confluence at $84.08–$85.50 (Fibonacci 23.6%, 50-MA, and horizontal support) presents a critical juncture for Zillow Group C. Bearish momentum indicators (MACD crossover, RSI downtrend) favor further downside if support breaks, with $79.23 (38.2% Fib) as the next target. Counterbalancing factors include oversold KDJ, moderate volume during declines, and Bollinger Band support. A rebound above the 50-MA ($85.50) could restore bullish sentiment, targeting $89.00 resistance. Given the convergence of technical evidence, the near-term bias leans cautiously bearish, with vigilance warranted around the $85.50 support cluster.