Zscaler Inc (NASDAQ:ZS) stock just hit its lowest level since April, last seen down 0.2% to trade at $226.95. The shares are still eyeing a 25.9% win for 2025, however, with seven monthly this year. What's more, the $225 area is now emerging as support, and a historically bullish, long-term trendline could catapult ZS higher in 2026.
More specifically, ZS is within 3% of its 24-month moving average, after closing above this trendline for the past five months. According to Schaeffer's Senior Quantitative Analyst Rocky White, this signal has occurred three times in the past 20 years, after which the stock was higher one month later 69% of the times with an average 7.2% gain. Three months later, the security averaged a larger 19.8% pop, with 67% of those returns positive.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Zscaler stock's 50-day put/call volume sits higher than 95% readings from the last year. This means an unwinding of pessimism could keep the wind at the security's back.
Options are a good weigh to speculate on the equity's next moves, as its Schaeffer's Volatility Index (SVI) of 28% sits at the bottom of annual readings, suggesting options traders are now pricing in low volatility expectations.
