$Zip Co Ltd (ZIP.AU)$ shares rose 5.42% on Wednesday, with trading volume expanding to A$35.79 million. Zip has rose 3.81% over the past week, with a cumulative gain of 393.70% year-to-date.

Zip's technical analysis chart:

Technical Analysis:

• Support: A$3.16

• Resistance: A$2.63

• Price range A$2.63 to A$3.16: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend. The stock repeatedly touched the level near A$2.63, where it found significant support and subsequently rebounded. There is a strong presence of buy orders around A$2.63, suggesting a robust foundation for the price. There is considerable upward pressure near the resistance level of A$3.16, with a lot of profit-taking positions, which suggests strong selling pressure. Going forward, it will be crucial to monitor whether the stock can effectively break through the resistance level at A$3.16.

Market News :

• Zip announced its first-quarter earnings on October 29, reporting a significant financial boost due to a 40% year-over-year increase in usage in the U.S., its largest economy. The company posted cash earnings before tax, depreciation, and amortization of A$31.7 million for the three months ending September, which is more than three times the amount from the same period last year. Revenue for the period also saw a 19% increase, reaching A$239.9 million, with the U.S. contributing notably to this growth with a 40% increase to A$137.4 million. The total number of transactions on Zip's platform grew 18%, amounting to 21.3 million, driven by a substantial 40% increase in the U.S. to 10.3 million transactions.

• Zip disclosed a shift in the indirect holdings of its director, Kevin Moss, who has recently purchased 3,250 fully paid ordinary shares in a market transaction, valued at around US$6,342. This transaction signifies an important development for stakeholders and shareholders, indicating active involvement by the company's leadership in its equity instruments.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status. Technically, it is necessary to monitor whether the stock price continues to stay within the upward channel, whether the support at the bottom of the channel remains valid, and whether the resistance level can be effectively broken through.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: ZIP, bloomberg