2012 is shaping up to be a stellar year for social game developer Zynga (ZNGA), a $9.3 billion firm that went public back in December. Despite a rocky start to life as a publicly traded company, shares of the firm have rallied more than 40% in the new year.
Now that there's some trading history behind shares, traders should feel a bit more confident about taking on the setup in Zynga.
There's more to trading a recent IPO than meets the eye (for more on how to trade an IPO, check out Stockpickr's primer on the subject). In Zynga's case, the firm just completed a short-term ascending triangle, breaking out above the $13 resistance level in yesterday's session. Remember, that's the same pattern that we just looked at in LEG.Right now, there's a strong short-term setup in buying Zynga in anticipation of a test of $14.50 resistance. That said, the much more attractive setup comes if Zynga can successfully push above that $14.50 all-time high. Because it's a place where shares have historically stalled a couple of times, a move above $14.50 sends a strong signal that buyers are in control of ZNGA right now. More risk-hungry traders can be buyers now. Zynga shows up on recent lists of 4 Companies Riding Facebook's Wave and 3 Tech Stock Leaders of 2012. Follow @stockpickr
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