Zillow Stock Rises 2.31% Amid Mixed Technical Signals And Golden Cross Formation

Zillow Group C (Z) recently closed at $83.70, rising 0.24% for a two-day cumulative gain of 2.31%. This uptick suggests cautious bullish sentiment, though broader technical context is required to assess sustainability.
Candlestick Theory
Recent sessions display indecision patterns. The August 22nd 7.42% surge created a robust bullish candle signaling strong accumulation, with follow-through stalling near $87.44. Subsequent price action formed lower highs, establishing $86.94–$88.13 as resistance. Current consolidation near $83.50–$84.64 shows small-bodied candles, indicating equilibrium between buyers and sellers. Key support resides at the August 21st swing low ($80.08), while resistance solidifies at the July high of $87.44.
Moving Average Theory
The 50-day moving average (approx. $76.80) has crossed above the 200-day average ($73.20), forming a bullish "golden cross" – typically signaling long-term momentum shift. However, the price currently trades below both the 100-day ($80.50) and 200-day MAs, reflecting lingering near-term pressure. The 50-day MA now acts as dynamic support. Consecutive closes above the 100-day MA would reinforce recovery potential.
MACD & KDJ Indicators
MACD hovers near its signal line at -0.40, with a neutral histogram – suggesting trend indecision. A decisive crossover above zero is needed to confirm bullish momentum. Meanwhile, the KDJ oscillators show the %K line (77) above %D (65), implying short-term upside bias. However, the J-line (91) is overbought on daily frames, warning of pullback risk. Divergence appears as price made lower highs in August while KDJ printed higher highs, indicating weakening downward momentum.
Bollinger Bands
Bands have contracted significantly (20-day bandwidth: 5% vs. 15% in April), signaling compressed volatility. Price hovers near the upper band ($84.50), typically indicating strength. However, the lack of volume-backed breakout attempts raises skepticism. A close above $84.64 (upper band) would imply bullish resolve, while failure may trigger reversion toward the middle band ($81.60).
Volume-Price Relationship
Volume spikes accompanied the April rally (peak: 9M shares) and July selloff (6.5M shares), validating directional conviction. Recent gains lack volume confirmation – the two-day 2.31% climb averaged 1.88M shares vs. the 3M+ average during March volatility. This divergence questions sustainability. Notably, the August 22nd surge saw 5.4M shares, establishing $81.54 as major support.
Relative Strength Index (RSI)
The 14-day RSI reads 58, in neutral territory. Recent price peaks in late August failed to push RSI above 60, reflecting fading upward momentum. Bearish divergence is present: the August 26th high ($88.13) occurred alongside an RSI of 58, lower than the July 25th peak ($87.44, RSI 68). While not oversold, RSI’s inability to breach 60 during bounces remains a concern.
Fibonacci Retracement
Using the April low ($60.29) and July high ($87.44), key Fibonacci levels emerge:
- 38.2%: $77.45 (acted as support on August 21st)
- 50%: $73.86
- 61.8%: $70.28
Current price trades between the 23.6% ($82.60) and 38.2% retracements. Holding above $77.45 maintains the recovery narrative; failure risks testing $73.86.
Confluence & Divergence
Confluent support forms at $77.45–$80 (Fibonacci 38.2% + swing lows + 50-day MA). Resistance converges at $84.64–$87.44 (Bollinger upper band + July/August highs). Bullish agreement appears via the golden cross and KDJ momentum. However, divergences are critical: 1) RSI non-confirmation of August highs, 2) Volume deficit during recent gains, and 3) Bollinger squeeze lacking decisive resolution. These contradictions suggest consolidation precedes the next material trend shift.
Conclusion
Zillow Group C exhibits conflicting technical signals. Long-term bias leans bullish (golden cross, defended Fibonacci supports), but near-term price struggles with overhead supply amid unconvincing volume. Probable range: $77.45–$84.64. Traders should monitor $84.64 (Bollinger/resistance) for breakout potential and $80 (volume gap support) for downside vulnerability. KDJ overbought conditions near resistance may trigger pullbacks, offering entries if $77.45 holds.