ZILLOW GROUP INC. DROPPED TO KEY SUPPORT LEVEL ON WEDNESDAY

2021年11月4日

Zillow Group Inc.’s roughly $1.15 billion pile of mortgage bonds tied to its home-buying business has been thrust into the spotlight after the real-estate giant on Tuesday called it quits on its iBuying home-flipping business. The Class C shares Z, -24.92% plunged 24.6% in afternoon trading, and the Class A shares ZG, -22.95% plummeted 23.4%, both toward 15-month lows, after Zillow reported late Tuesday a surprise third-quarter loss and revenue miss, said it would cut about 25% of its workforce and announced plans to “wind down” its iBuying service after disclosing losses of more than $550 million on homes purchased. The Class C shares are suffering the most significant one-day drop since November 2018. They have now slid 36.6% over the past three days, and the A shares have shed 38.1% over the same time.

But at the moment analyst’s target zone for the C shares is about 75% above current levels, and the average A price target implies 80.8% upside. The fair value is around $343.54, with a forecast earnings growth of 69.91% per year.
Also, on the weekly chart after the big drop yesterday, we see that the price stopped at 23.6 Fibo level and a strong support line at $65.00. It would be interesting how the traders will react in the following days.

If the price continues to fall and break these levels, it is possible to see a price test around $50.00 or lower levels around $28.00 or slide at the low levels from March 2020 around $20.00.
Looking at our short-term oscillators, we see that the RSI rebounded from slightly above its 30 lines, while the MACD, although below both it's zero and trigger lines, shows signs of bottoming as well, and they marked that the price is in the oversold zone. If the price rebounds from this current level and the traders receive any positive news in the following days, it will activate the bulls on the market. The positive sign will be the price breakthrough the 38.2Fibo level around $91.00 will probably test 50.0 Fibo around $114.00 or go higher around $135.00.



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