The internet has had plenty of headlines recently with AMZN looking to takedown WFM a peek into other names in the group can be potentially profitable. ETSY has gained ground 6 of the last 8 weeks since jumping off the round 10 number in early May and three of those weekly gains were very strong, adding 8.4, 18.2 and 11.5% the weeks ending 5/5, 5/19 and 6/23. Today we focus on ZG and directly below is how it was presented in our Tuesday 5/23 Game Plan and then we take a current view. We focus only on PRICE action here, but perhaps the stock is acting well on the back of some good homebuilder news and could be a sign of a strengthening economy.
Stocks that can be bought as they pullback toward round numbers are ZG. ZG is an internet play higher by 14% YTD and 47% over last one year period. Earnings have been mixed with gains of 10.3 and 5.6% on 5/5 and 11/2 and losses of 7.6 and 5.5% on 2/8 and 8/5. The stock registered a strong 6 week winning streak ending between 3/31-5/5 which rose 28% and the week ending 5/5 jumped almost 14% in double average weekly volume taking out round 40 number which had been resistance dating back to weeks ending 11/21/14, 2/20/15 and 8/5/16. Should move toward round 50 number which stopped stock cold weeks ending 7/25-8/1/14. For now enter ZG on pullback toward round 40 number at 41.25. Could go on to fill gap from 5/4 session just below.