Saturday, September 21, 2013

Zynga's First Close Above The 200ema

From a technical standpoint, Zynga (ZNGA) is finally sitting in a bullish position after nearly two years of being public. The social game maker has struggled repeatedly to replicate the success of the original games such as FarmVille. The game maker continues to struggle, but the stock is starting to show some life. Now the question is whether this move is based more on hope or reality. The stock closed above the 200ema for the first time in history on Friday. Next week should be interesting as this can portend a bullish move higher.





The new CEO hasn't made many announcements other than a reorg and the plan to continue focusing on the social gaming sector. The stock could just as quickly plunge back to recent lows without some solid fundamental improvements in the business. For now though, investors are finally digging this stock.


Disclosure: Long ZNGA. Please review the disclaimer page for more details. 



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