Zillow Group A Surges 3.93% On Bullish Technical Breakout

Comprehensive Technical Analysis: Zillow Group A (ZG)
Zillow Group A (ZG) closed at $85.75 on September 11, 2025, posting a 3.93% gain with above-average volume, suggesting renewed bullish momentum after recent consolidation.
Candlestick Theory
Recent candlesticks show a bullish reversal pattern emerging. The September 10 session formed a hammer near $82.27 (low) after two down days, signaling potential exhaustion of selling pressure. This was confirmed by the September 11 white marubozu (open near $81.5, close at $85.75), indicating strong buying dominance. Key resistance is evident at $86.50–$87.00 (September 8–9 highs), while support holds near $81.50–$82.00, aligning with the August swing low. A decisive break above $86.50 would invalidate the recent downtrend structure.
Moving Average Theory
The 50-day MA ($75.80) crossed above the 200-day MA ($70.20) in early September, confirming a long-term bullish trend. The 100-day MA ($72.50) provides dynamic support. However, the price is currently testing the 20-day MA ($83.90) from below after dipping beneath it last week. A sustained close above the 20-day MA would signal short-term trend recovery, while the golden cross (50>200) reinforces the broader uptrend.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line (-0.8) poised to cross above the MACD line (-1.2), hinting at a potential bullish crossover. Meanwhile, the KDJ indicator exited oversold territory (K: 28 → 35, D: 25 → 30) on September 11, supporting near-term upside potential. Divergence is noted: KDJ’s bullish turn contrasts with MACD’s lagging signal, warranting caution until MACD confirms.
Bollinger Bands
Volatility expanded sharply during the September 11 rally, with price closing near the upper band ($86.00). This follows a squeeze in late August (bands narrowed to ±1.5%), which typically precedes directional breaks. The breach of the middle band ($82.50) signals bullish momentum. A sustained position above $82.50 would validate the breakout, while mean reversion risks linger if the price retreats into the band.
Volume-Price Relationship
Volume surged 42% on September 11 versus the prior session, validating the bullish price move. Recent distribution phases (e.g., September 9 decline on elevated volume) have been countered by accumulation at $81–$82. The volume-weighted average price (VWAP) since August is $77.50, well below the current price, indicating supportive institutional participation.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold (34) to 47, neutralizing immediate downside risks. While still below the overbought threshold (70), its sharp recovery aligns with price strength. However, RSI remains below its 50-neutral level, suggesting intermediate momentum is not yet decisively bullish. A move above 50 would strengthen the recovery thesis.
Fibonacci Retracement
Using the June low ($56.08) and September high ($88.45), key retracement levels are $77.70 (38.2%), $72.25 (50%), and $66.80 (61.8%). Recent price action respected the 38.2% support ($77.70) during August–September pullbacks. The September 11 rally now challenges the 23.6% retracement ($86.20). A close above this level would open a path toward the $90 psychological resistance.
Confluence and Divergence
Significant confluence exists at $82.00–$82.50, where the hammer candlestick, Bollinger middle band, and 20-day MA converge, solidifying this as critical support. Bullish alignment is evident in volume confirmation, KDJ reversal, and Fibonacci support. However, a divergence persists between MACD’s cautious stance and RSI’s faster recovery. Traders should monitor whether MACD confirms KDJ’s signal to resolve this tension. Probable upside targets are $86.50 (immediate resistance) and $90.00 (year-to-date high), though failure to hold $82.00 may trigger retests of $77.70 Fibonacci support.