ZS - Breakout Confirmed — Now What?

2 Haz

Zscaler has broken out of a year-long ceiling with volume and momentum — as long as it holds above $275, the trend has shifted bullish and targets $310+ are now in play.

1. Structural Breakout
That resistance zone capped price for over a year — multiple failed attempts, including the November–December 2023 top. This breakout is significant, and invalidates the bear case that this zone would hold again. ZS has now entered open-air territory — next real resistance isn’t until $310–320 (based on prior highs from 2021–2022).

2. RSI & MACD Still Hot – But Not Crashing
RSI is cooling slightly from extreme overbought (still ~79), but hasn't broken down — momentum remains bullish. MACD still trending higher, although it's stretched — but no bearish crossover yet. As long as price consolidates above the breakout zone, these indicators can reset without breaking the trend.

3. Volume Validates the Move
The breakout came on surging volume — a textbook confirmation signal. This is not a weak breakout or bull trap; this is buyers forcing a regime change. Institutions were clearly active.

The Playbook from Here:
🟢 Bull Case (Primary Scenario)
Price holds above $275–280 on any retest → confirms breakout
RSI cools into the 60s without sharp reversal
MACD slowly resets while price trends sideways/up
Target = $310–320 next resistance zone (late 2021 levels)

🔴 Bear Case (Only If)
Fails back below $275 on volume → false breakout
RSI breaks sharply below 60 and MACD crosses down hard
This would put $250–257 back in play as a retracement target

9 Haz

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Zscaler Breakout Confirmed — Fibonacci Targets Unlocked
ZS has broken out of a year-long ceiling with volume and momentum — as long as it holds above $275, the trend has shifted bullish and Fibonacci extension targets of $310–340+ are now in play.

1. Structural Breakout
The $275–280 resistance zone that capped price for over a year has finally given way. After multiple rejections (notably in Nov–Dec 2023), this breakout:

Invalidates the bear thesis
Signals a trend regime change
Opens the door for price discovery

ZS is now trading in open air, with the next visual resistance levels from 2021–2022 sitting in the $310–320 zone.

2. Momentum — Still Constructive
RSI sits around 79 — elevated but not yet divergent
MACD is trending higher, still bullishly stacked
No signs of exhaustion yet, but momentum cooling expected

As long as price consolidates above the breakout zone, these indicators can reset without reversing, fueling the next leg higher.

3. Volume — Confirms Breakout
Breakout candle printed on strong volume. This is not a false breakout — institutions likely bought the move. This adds credibility to the breakout and favors continuation

4. Fibonacci Extension — Defining the Next Legs
Using:

Swing low: ~$190 (Jan 2024)
Pre-breakout high: ~$275
Pullback base before breakout: ~$240

Fibonacci Targets:
Extension Price Target Commentary
1.0x $275 ✅ Broken — prior ceiling
1.272 $310–312 First major target zone
1.618 $337–340 High-confidence target (next leg)
2.0 $370+ Stretch target if momentum persists


🔴 Bear Case (Low Probability but Critical)

Falls back below $275 with volume
MACD bear cross + RSI < 60
Would likely target a pullback to $257–250