ZS RSI

What is ZS?

Zscaler was founded in 2007 by Jay Chaudhry and K. Kailash, who recognized that the rise of the cloud and mobile workforce would eventually break the traditional castle-and-moat security model. Instead of relying on physical appliances, they built a purpose-built cloud platform designed to secure traffic regardless of location. This vision culminated in the Zscaler Zero Trust Exchange, which is now the foundation of the company’s business model.

The core of Zscaler’s offering revolves around its multi-tenant architecture that processes over 300 billion transactions daily. Their primary products, Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA), redefine how users interact with the web and internal applications. ZIA acts as a secure gateway for the open internet, while ZPA allows users to access private corporate data without ever being placed on the network itself. They have since expanded their portfolio to include Zscaler Digital Experience (ZDX) for performance monitoring and Zscaler Cloud Protection to secure workloads across various public clouds.

Since its IPO in 2018, Zscaler has achieved several milestones, including joining the NASDAQ-100 and consistently being recognized as a leader in the Gartner Magic Quadrant. Their financial standing is characterized by robust double-digit revenue growth and high gross margins, reflecting a sticky customer base and a successful land-and-expand strategy. While the company has prioritized growth over GAAP profitability, its free cash flow generation remains a point of strength for investors.

Looking ahead to 2026, Zscaler is positioning itself as an essential layer for the artificial intelligence era. Their strategic roadmap focuses on Zero Trust for AI, ensuring that the data flows powering large language models are secure and compliant. We expect them to aggressively pursue the sovereign cloud market and automated branch connectivity. By 2026, Zscaler’s goal is to transition from a web security provider to a holistic data protection platform that secures every interaction between users, devices, and workloads globally.

What is RSI?

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of price changes. Developed by J. Welles Wilder, RSI ranges from 0 to 100 and helps traders identify overbought or oversold conditions in an asset.

For ZS, monitoring the RSI provides valuable insights into potential trend reversals and entry/exit points. When the RSI drops below 30, Zscaler, Inc. Common Stock is typically considered oversold, suggesting the asset may be undervalued. Conversely, an RSI above 70 indicates overbought conditions.

Understanding ZS RSI Signals

• Oversold (RSI below 30): When ZS RSI falls below 30, it suggests the asset may have been sold off excessively and could be due for a bounce. This is often viewed as a potential buying opportunity, though it's important to consider other factors and not rely solely on RSI.
• Overbought (RSI above 70): An RSI above 70 indicates ZS may be overbought, potentially signaling a pullback or consolidation phase. Traders often use this as a signal to take profits or wait for better entry points.
• Divergences: When ZS price makes new highs or lows but RSI doesn't confirm these moves, it can signal weakening momentum and a possible trend reversal.

Daily vs Weekly RSI for ZS

This page displays both daily and weekly RSI for ZS. The daily RSI responds quickly to short-term price movements, making it useful for day traders and swing traders. The weekly RSI provides a broader perspective on momentum trends, helping longer-term investors identify major oversold or overbought conditions.

By analyzing both timeframes together, you can better understand Zscaler, Inc. Common Stock's momentum at multiple levels and make more informed trading decisions.

Historical RSI Oversold Analysis

Above, we track historical instances when ZS RSI dropped below 30 (oversold territory). Reviewing these past oversold levels helps identify patterns and understand how Zscaler, Inc. Common Stock has historically responded to oversold conditions. Many traders use these historical reference points to gauge potential support levels and timing for entry positions.