Nearest Resistance: $4.60
Nearest Support: $3.80
Catalyst: Earnings, Acquisition News
Shares of social video game company Zynga (ZNGA) are up 17% as I write this afternoon, rallying hard after gapping up on earnings and acquisition news. Zynga reported a loss of 3 cents per share, a number that's still a full cent better than the 4-penny loss that Wall Street was anticipating. ZNGA also announced that it would be acquiring NaturalMotion for $527 million, a move that puts successful game titles in Zynga's portfolio and gives the firm access to NaturalMotion's gaming engine.
The buying is good news for ZNGA shareholders, but it frankly doesn't change much from a technical standpoint. ZNGA is still trading in a price channel -- today's move just swatted it higher from support. Look out for resistance to come into play at $4.60.