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The housing market gave off some positive press this week, with the National Association of Home Builders’ index jumping to 65 in September — tied with October 2015 as the highest level since 2005 — and building permits for single-family homes making their biggest gain since June 2014.
Housing bulls should consider Zillow Group, Inc. (NASDAQ:Z) as a potential trade. Shares of the online realty database company are in a strong technical position, and the Profit Scanner powered by Recognia sees 19%–22% upside ahead.
That outlook stems from Zillow’s completion of a bullish Continuation Wedge on Monday. The pattern consists of two converging trendlines slanted down as the stock takes a break from an uptrend. When shares then break above the upper trendline, it’s a signal that they are ready to continue the prior uptrend.
Based on this pattern, Profit Scanner is looking for Zillow to reach $40.25–$41.50 in the next 35 trading days. The chart above shows two other, short-term bullish signals from the MACD and Williams %R, respectively. So, technically speaking, the stock looks poised for nice upside in the near term as well.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.