Zscaler Stock Plummets After Profit Outlook Disappoints
Shares in Zscaler took a significant hit in extended trading on Tuesday. This followed the company's release of an earnings guidance for the current quarter and full year that fell well below Wall Street expectations. The provider of cloud-based cybersecurity services cited that enterprise customers are being more cautious with their technology budgets due to economic uncertainty.
Understanding Zscaler's Price Movements
For those unfamiliar, when a company's stock price falls dramatically, it can often find support at certain price levels. Support is where the stock may stop falling and start rising again, as it attracts more buyers. In Zscaler's case, there are several key levels to keep an eye on.
Key Levels to Watch
$164 Level: This is a critical price point where Zscaler shares may find support. This level is aligned with a trendline that connects three major swing highs from last year. Think of it as a floor where the price might stop falling because there are more buyers waiting.
$143 Level: If the stock continues to drop, the next level to watch is $143. This area aligns with the February 2023 peak and similar levels seen between June and August last year. Investors might see this as a good place to buy if they expect the price to rebound.
$135 Level: The deepest level of potential support is around $135. This is where the stock might attract buyers based on trading patterns observed between October 2022 and August last year. It also matches a price target based on a pattern from the previous month's high.
Why These Levels Matter for Investors
These price levels are crucial because they indicate where investors think the value of the stock should hold and possibly reverse. Monitoring these levels can help investors make informed decisions about when to buy or sell. If Zscaler's stock approaches these numbers, it might be an opportunity for those looking to enter or exit a position based on market sentiment and analysis.
Investors should remain vigilant as Zscaler navigates through this earnings-driven decline. Understanding these critical price levels can provide guidance amid the volatility.
