On the weekly charts, Zscaler (ZS) is currently in the 10th Phase of its 18 Phase Adhishthana Cycle. Since entering this phase, the stock has already rallied by approximately 33%. What's driving this move, and where could it go from here?
Zscaler's Adhishthana Cycle So Far
So far, Zscaler has shown an alignment of around 66.66% with the Adhishthana Principles, our proprietary framework that forecasts stock behavior through cyclical analysis, incorporating both quantitative signals and behavioral archetypes.
Here are some key alignment points observed:
Phase 2: The Rally of Buddhi
In Phase 2, Zscaler initially traded in a consolidation range with a bearish tilt for exactly 37 bars, in line with what the Adhishthana Principles anticipate. Following this, the stock turned sharply bullish and rallied by roughly 225 percent, forming what is known as the Rally of Buddhi in the Principles.
The Illusory Rally in Phase 4 and Renunciation in Phase 5
Phase 4 began at $191.14, and the stock surged to a high of $376.11. However, this rally was not participated in by our clients, as this phase typically presents illusory gains. As expected, in Phase 5, a phase of renunciation, Zscaler gave up all its Phase 4 gains and even broke the Phase 4 low of $125.12, thereby achieving the level of renunciation.
Phase 6: The Level of Nirvana
In Phase 6, Zscaler established its Level of Nirvana at $146.93. This level now acts as a key valuation barometer and serves as a magnet during bearish phases.
Why Is Zscaler Rising?
Zscaler is currently in Phase 10, a phase that often marks the beginning of the ascent toward what we refer to as the Adhishthana Himalayan Formation. The stock's behavior has been in line with this expectation, rallying steadily after the phase began.
As outlined in my book, Adhishthana: The Principles That Govern Wealth, Time & Tragedy:
“The 18th interval is expected to be the level of peak formation; if not, then the 23rd interval. If this phase concludes without forming the peak, it is anticipated to occur in the following phases.”
This suggests that the peak for the current rally could emerge between the 18th and 23rd bars of Phase 10 -- translating to the window between 2 September and 12 October 2025.
Monthly Chart Outlook
On the monthly timeframe, Zscaler is in its Phase 2. After consolidating for 38 bars, which is in line with the principles, the stock has begun a classic Rally of Buddhi. This monthly Phase 2 is scheduled to end on 31 January 2028. If this rally continues to align with the principles, it is possible that Zscaler may not peak in the current weekly Phase 10, but instead in Phase 11.
Points of Concern
Despite the promising setup, there are some cautionary notes:
- Zscaler did not deliver a supreme move in Phase 9 on the weekly charts, which is typically expected under the principles.
- Its weekly alignment percentage is lower compared to some other stocks.
- On a fundamental level, Zscaler's profitability metrics have not been as strong as compared to its peers.
Investor Takeaway
Zscaler remains a strong hold at this point. Investors should keep a close watch on the period from 2 September to 12 October 2025 to assess whether a Phase 10 peak is forming. Portfolio decisions can then be calibrated accordingly.
