Stock Chart Analysis ZION
Zions Bancorporation (Public, NASDAQ:ZION)
ZION has been one of the most reliable stocks for me on the short side over the past year. It seems every time there is market weakness, ZION has been there for me as a financial stock that would drop quicker and further than many of its peers.
However, something changed over the past few months. ZION started failing as a short. In fact, ZION has been acting bullishly now, for a couple of months, flagging near resistance. If you look back you can notice a distinct change in ZION's trading pattern after the July low in how it consolidates. Prior to July, ZION would have an impulsive move lower and then flag upwards as it consolidated the down move. After the July low, ZION began having impulsive moves higher, with the flags drifting lower which is bullish. Currently, ZION is flagging near resistance after attempting a breakout above $20. With over 25% of the float being short, a move above this level could trigger a sharp move higher. The level to watch on the downside is the August and September low, which if breached could lead to a retest of the $10 level.
Good Trading,
Joey
