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Nearest Resistance: $2.50
Nearest Support: $2.10
Catalyst: Q3 Earnings Beat
Social media gaming site
Zynga(ZNGA - Get Report) is probably the most unlikely gainer today. Shares of the firm have had a rock tied to them since March, but the stock is up around 11% as I write today.
>>5 Hated Stocks Poised to Pop on Earnings
The big catalyst for Zynga earnings. The firm reported better earnings than expected for the third quarter, impressing investors just a few days after discreet layoffs pushed analysts to rethink estimates. While the news is good for ZNGA shareholders, it doesn't do much to change the firm's technical outlook right now.
That's because even though ZNGA is up 11% this afternoon, shares are still sitting just below resistance at $2.50. In fact, shares actually managed to hit their head on that $2.50 price level before reversing lower intraday/ That tells us that the glut of supply that's caused $2.50 to act as a price ceiling is still there.
In spite of today's gains, I'm still calling Zynga
a social media stock to sell.