Nearest Resistance: $3.25
Nearest Support: $2.80
Catalyst: Surprise Profit
Social game maker Zynga (ZNGA - Get Report) is actually enjoying some upside today (to the tune of 2%), after Tuesday night's earnings brought shareholders a surprise 1-cent profit. Investors are celebrating by piling on positions in the stock yesterday and today. But that doesn't necessarily mean that it's wise to join the crowd on this one.For starters, Zynga still has some big problems that aren't cured by that penny-per-share profit. Zynga may not be the garbage that investors thought it was last week, but it's still not a fundamentally attractive name. On the technical side, Zynga is essentially mid-way between resistance and support right now, a fact that doesn't exactly scream "high probability trading opportunities." If Zynga can overcome its last swing high at $3.25 from 2012, then this stock may have some more upside ahead of it, but until then, don't underestimate the sellers still hanging out at that price. To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.