I continue to believe that the social media stocks may likely be in the latter stages of a blow-off top as per the recent Social Media: The Next Great Bubble post and ZNGA (Zynga Inc.) happens to be one of the top holdings of the SOCL, Global X Social Media ETF. However, regardless of my own market biases, I strive to post the most attractive long and short setups and it looks like ZNGA could move sharply higher should prices make a solid break above this basing pattern. Resistance comes in at the 4.05 area and so one could use any break above that level as a trigger for a long entry or wait for 15 minute, 60 minute or possibly even a daily candlestick close above 4.05, in order to help minimize the chance of entering on a false breakout. The prices targets shown on the chart line up with both horizontal resistance, defined by a previous reaction low & high as well as the 127.2% & 161.8% Fibonacci projections. T1 at 4.43 is the current preferred target with a suggested stop below 3.95 for those targeting T1 & below 3.79 for those targeting T2 (5.20). ZNGA daily chart shown:
