Zillow Group C Rises 0.97% As Technicals Signal Potential Rebound Near $80 Support

Zillow Group C (Z) rose 0.97% to close at $80.17 in the latest session, trading between $79.70 and $81.28. The following technical analysis examines this movement within broader market context.
Candlestick Theory
Recent candlestick patterns indicate potential near-term stabilization after volatility. The 2025-08-12 session formed a bullish hammer pattern near the $78.40 support level established on 2025-08-11. This coincides with the psychological $80 support zone, while resistance emerges at $85.17 (recent swing high on 2025-08-06). The hammer formation following three consecutive bearish sessions may signal seller exhaustion, though confirmation requires sustained follow-through above $81.28.
Moving Average Theory
Current price ($80.17) trades above the calculated 200-day SMA ($70.25) and 100-day SMA ($74.80), confirming the long-term uptrend remains intact. However, it has recently dipped below the 50-day SMA ($81.90), suggesting short-term bearish pressure. The 50/200-day golden cross formed in 2025-Q1 continues to provide structural support. A sustained move above $81.90 would realign short-term momentum.
MACD & KDJ Indicators
MACD shows bearish momentum with the signal line crossing below MACD on 2025-08-07. However, the histogram is converging toward zero, indicating weakening downside pressure. Concurrently, KDJ readings approach oversold territory (K-line: 28, D-line: 34), with the %J curve (-4) suggesting possible exhaustion of downward momentum. This confluence may foreshadow near-term bullish reversal potential.
Bollinger Bands
Bollinger Band width expanded sharply during the 2025-08-08 selloff (price touching lower band), reflecting elevated volatility. Recent contraction sees price reverting toward the 20-day moving average midline ($81.10). This mean-reversion behavior, coupled with tighter bands, suggests decreasing volatility and potential consolidation between $78.40 (lower band) and $83.80 (upper band).
Volume-Price Relationship
The 2025-08-12 gain occurred on elevated volume (3.73M shares vs. 2.57M previous session), validating buyer interest. Notable volume spikes accompanied key moves: the 2025-08-06 breakout (6.20M shares) and 2025-08-08 decline (2.98M shares) show conviction in directional moves. Recent volume expansion during upside sessions supports accumulation near $79-$80.
Relative Strength Index (RSI)
The 14-day RSI reads 42, exiting oversold territory after testing 30 last week. While this indicates bearish momentum moderation, it remains below the neutral 50 threshold. This aligns with MACD convergence but warrants monitoring for sustained improvement. Historical overbought (>70) and oversold (<30) RSI extremes have reliably preceded reversals, though false signals occurred during strong trends.
Fibonacci Retracement
Applying Fibonacci levels to the recent downswing from $88.07 (2025-08-07 high) to $78.40 (2025-08-11 low) shows the current price holds above the 23.6% retracement level ($79.90). Consecutive closes above this level suggest potential progression toward the 38.2% ($82.05) and 50% ($83.23) retracements. The $79.90 level now acts as immediate support, with violation reopening downside toward $78.40.
Confluence & Divergence Observations
Confluence appears at $79.90-$80, where Fibonacci support, volume validation, and candlestick reversal signals align with KDJ oversold conditions. A notable divergence exists between price action and momentum oscillators: while price tested new monthly lows, MACD and RSI formed higher lows, suggesting weakening bearish momentum. Volume patterns also diverge from the downtrend, with expanding volume on up days versus contracting volume during declines since 2025-08-08.
Probabilistically, Zillow Group C shows technical evidence of basing near $80, supported by volume-backed bullish candlestick formation and oversold oscillator readings. However, sustained recovery requires clearance of the 50-day SMA ($81.90), which would confirm bullish reconfirmation. Failure to hold $79.90 may trigger retesting of the $78.40 swing low, particularly if broader market weakness persists. The confluence of supportive indicators near current levels slightly favors upside resolution, though confirmation through resistance breaks remains essential.