ZILLOW GROUP INC - C (NASDAQ:Z) - A Strong Technical Setup for Breakout Potential

ZILLOW GROUP INC - C (NASDAQ:Z) has been identified as a standout candidate for technical investors based on its strong momentum and consolidation pattern. The stock currently holds a high technical rating and an excellent setup score, suggesting potential for a breakout. Below, we examine the key factors contributing to this assessment.

Technical Strength

• High Technical Rating (9/10): Zillow Group’s technical health is strong, with both short-term and long-term trends positive. The stock has outperformed 86% of the market over the past year and ranks in the top 15% of its industry (Real Estate Management & Development).
• Support from Moving Averages: The stock is trading above key moving averages (20-day, 50-day, and 200-day), reinforcing its bullish trend.
• Relative Strength: Z has shown consistent upward momentum, with a 12-month performance of +44% and a recent 3-month gain of +18%.

Setup Quality

• Perfect Setup Rating (10/10): The stock is consolidating within a defined range ($67.10 - $73.21), with decreasing volatility—a key characteristic of a high-quality breakout setup.
• Clear Support and Resistance: A strong support zone exists between $68.72 and $70.42, while resistance sits near $72.53-$73.65. A breakout above $73.66 could signal further upside.
• Institutional Interest: Recent buying activity from large players and a "Pocket Pivot" signal add confidence to the setup.

Trade Considerations

• Entry Point: A breakout above $73.66 could serve as a potential entry.
• Stop Loss: A stop below $68.71 limits downside risk to ~6.7%.
• Volume Confirmation: The stock’s average daily volume (~2.06M shares) provides sufficient liquidity for trading.

For a deeper technical review, see the full ChartMill Technical Report.

Our Technical Breakout Setups screener lists more high-quality breakout candidates updated daily.

Disclaimer

This is not investment advice. The analysis reflects observations at the time of writing, and market conditions can change. Always conduct your own research before making trading decisions.