ZM - Focus on the Momentum
Updated
Look at that long, steady rise in RSI. We'll be triple-topping soon and I don't expect it to pullback and retest after it pops above $516 - next stop 525-530. If price breaks above $530, expect price action to go full parabolic similar to September 23. Sellers will be quick to jettison the second any weakness appears on the 2-min charts. Once RSI breaks above 70 watch for increase volume from scalpers looking for a quick rise.
If you step back and look the volume profile of this stock, it's getting pretty top heavy and ripe for a major correction (5-8% in a single day). That said, short of a headline saying that a definitive covid-19 vaccine will be available shortly to all Americans, I don't see the momentum drive of this stock fading anytime soon. I suspect will breakdown to $496 again at some point and reboot consolidation between $505 and $518.
That's my short and long-term forecast. Bullish until we go butter knife parabolic. Bearish from breakdown to $496.
If you step back and look the volume profile of this stock, it's getting pretty top heavy and ripe for a major correction (5-8% in a single day). That said, short of a headline saying that a definitive covid-19 vaccine will be available shortly to all Americans, I don't see the momentum drive of this stock fading anytime soon. I suspect will breakdown to $496 again at some point and reboot consolidation between $505 and $518.
That's my short and long-term forecast. Bullish until we go butter knife parabolic. Bearish from breakdown to $496.
Note
This played out pretty accurately. The price action popped up to $537 in the last few weeks but it's been pulling down. Anyone who is patient and willing to hold is okay to buy at this time. I'm personally waiting for price to fall and stabilize @ $498 before opening a long entry. This company has merit. I've been using their product for work these past few months and it's proven to be the winner among lots of competing options. Like Roku, it doesn't have a deep moat (barrier to entry for competition), but what it does it does well. Companies like Facebook have proven that you don't have to be the best at what you do, you just need to provide a simple interface that's easy for users of all types to grasp. Despite the fact that we're talking about the end of the pandemic being in sight (a ways out, but still), I don't see this company disappearing. Too many businesses (like my own) have witnessed the profits that come from web-conferencing w/clients over in-person meetings. Strangely enough, the real immunization this pandemic has given us all is that its okay to communicate with people from a distance. Driving, parking, handshaking, and all that jazz that goes along with in-person conferencing is becoming a thing of the past.
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