Zscaler (ZS) Testing Major Support as Bullish MACD Divergence Builds
Zscaler approaches key support near $140 while bullish MACD divergence suggests potential accumulation at lower levels.
ZS chart showing daily MACD(12,26,9)
This daily chart snapshot is frozen to the original article analysis date, showing the last 250 bars with the indicators chosen for this article.
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.
If you want to understand what the wider market is doing, read the S&P 500 page for a simple breakdown of SPX trend, support and resistance, RSI, MACD, and how to analyse market pullbacks without panicking.