Zillow Retreats 1.39% After Testing Key $85 Resistance Level

Initial Context
Zillow Group C (Z) concluded the latest session at $82.49, down 1.39%, after testing an intraday high of $85.08 and low of $82.345. This retreat follows a robust 4.30% gain in the prior session, underscoring potential short-term profit-taking near resistance.
Candlestick Theory
The August 4 session formed a decisive bullish candle closing near its high ($83.65), signaling strong buying momentum. However, the subsequent session (August 5) printed a bearish candle rejecting the $85 level, establishing immediate resistance at $85.00. Key support converges at $79.50–$80.00, anchored by July’s consolidation lows and the psychological $80 threshold. A lower wick on August 1 at $77.93 further reinforces support.
Moving Average Theory
The 50-day moving average (near $77) currently trades above the 100-day ($74) and 200-day ($70), confirming a bullish long-term structure. Short-term momentum is intact with the price holding above the 50-day MA. The 200-day MA’s upward slope since early 2025 underscores the primary uptrend. A close below the 50-day MA would signal caution.
MACD & KDJ Indicators
The MACD histogram has flattened after a recent bullish crossover, suggesting waning upward momentum but no immediate reversal signal. The KDJ oscillators reflect overbought conditions (K-line: 78, D-line: 75), aligning with the August 5 retracement. While KDJ’s dip from overbought territory may indicate consolidation, a bearish crossover has yet to materialize. No notable divergence exists.
Bollinger Bands
Price touched the upper Bollinger Band ($84.50) on August 4 before retreating, reflecting typical resistance behavior. Bandwidth contracted notably in July before the breakout, indicating a volatility surge. Current bandwidth remains moderately wide, supporting continued directional movement. A close below the 20-period middle band ($80.70) could signal near-term weakness.
Volume-Price Relationship
The August 4 rally occurred on elevated volume (2.72M shares vs. 30-day avg. ~2.3M), validating bullish conviction. August 5’s decline saw reduced volume (3.49M shares), suggesting limited selling pressure. Notably, the July 10 breakout (+4.50%) recorded the highest volume in 3 months (4.13M shares), establishing $78–$79 as high-confidence support.
Relative Strength Index (RSI)
The 14-day RSI (64) resides in neutral territory, retreating from near-overbought levels (70 on August 4). Oversold conditions (<30) last occurred in late June during the $67–$68 consolidation. While RSI divergence is absent, its current position allows room for either consolidation or renewed upside.
Fibonacci Retracement
Using the March 2025 low ($49.40) and March 2025 high ($89.39), key levels emerge:
- 61.8% retracement ($74.17):
- Repeatedly held as support in July (July 10 low: $75.32).
- 38.2% retracement ($80.50):
- Aligns with current price action and the $80 psychological support.
- 23.6% retracement ($83.80):
- Served as resistance on August 5, reinforcing $84 as a key hurdle.
Concluding Synthesis
Multiple indicators converge around $80.00–$80.50 as critical support, combining Fibonacci, moving averages, and prior consolidation. Resistance remains firm at $84.50–$85.00, validated by Bollinger Bands, candlestick rejection, and Fibonacci levels. The lack of bearish divergences and the primary uptrend suggest the August 5 pullback may represent short-term consolidation rather than reversal onset. Sustained trade above $80 with volume support would bolster upside potential, while a decisive break below $79.50 may trigger a test of the 50-day MA near $77. Probabilistically, the broader technical structure favors consolidation with a mild bullish bias.