What happened
Zscaler (ZS) is now approaching a key support zone around the $140 level after a sustained period of downside pressure.
The stock has been trading within a large internal range since August 2020, roughly between $84 and $376. More recently, price failed to reach prior highs in October 2025 and has since broken structure to the downside after closing below the $165 level.
As price has moved lower into support, momentum has started to shift.
Over the past ~90 days, MACD on the daily timeframe has been forming clear bullish divergence — with momentum improving while price continues to decline.
Levels to watch
- Support: $140
- Major downside support: ~$120 (volume area low)
- Resistance: $165 (key structure level)
- Momentum: MACD bullish divergence forming
What would confirm the idea
A strong reaction from the $140 support zone would be the first sign that buyers are stepping in.
For confirmation, you would want to see:
- Price holding above support
- Continued strength or crossover on MACD
- A reclaim of the $165 level
A move back above $165 would signal a shift in structure and increase the likelihood of a move back into the broader range.
What would weaken the idea
Failure to hold the $140 support level would weaken the setup.
A clean breakdown below this zone would suggest sellers remain in control, opening the door for a move toward the next major support area around $120.
In that scenario, the current divergence would likely fail.
Bull vs bear scenarios
Bullish scenario:
Support holds at $140, divergence plays out, and price begins to reclaim structure above $165 — potentially rotating back into the range.
Bearish scenario:
Support fails, price moves lower toward $120, and the broader range begins to break down.
Bottom line
Zscaler is approaching a key technical level, with bullish MACD divergence suggesting that downside momentum may be weakening.
This creates a potential accumulation zone, but confirmation is still required. A strong reaction from $140 and a reclaim of $165 would strengthen the bullish case, while a breakdown would shift focus toward lower support.