Potential Inverse Head and Shoulder pattern in ZMIHS pattern in $ZM above $435 on closing basis. Stop on $428 trigger. first target $470 then $508.
ZM trade ideas
$ZM - Bear to Bull$ZM – Bear to Bull
Been waiting to re-enter $ZM. Mapping out my plan – any dip looks good to me now. Held 200 day EMA and gap filled – looks like it will break the 100 day, break out of bullish pennant, following fib zone, held vol profile. Technical and Oscillators are generally positive. RSI and MACD curling up... be nice to see three white soldiers.
NASDAQ:ZM
💻 Zoom: Technical Buy, Fundamental Sell 💻ZM (Zoom Video Communications Inc) was one of the companies that benefited most from the Covid pandemic. Revenue literally quintupled during one year and stock prices soared up to all time highs of $588.84 in October last year. Buying interest has faded since then, stocks currently trading 27% below these highs. The local low on 12 January was almost 44% below the all time highs, so a rather significant pullback during a 3 month period.
I have recently gotten back into Zoom and I explain my rationale below. Please note my core strategy is swing trading utilizing price action, volume and order flow.
📈 Technicals 📈
Since the all time highs in October last year, a wedge pattern with accompanying volatility contraction has developed on higher timeframes. We got an upside break on 15 January, when prices gapped up, followed by 13 days of sideways movement. That's when I started watching closely and mapped out several scenarios for a potential entry. I wanted to see the wedge resistance turned support holding and moving average to carry the price. We got both of these. Next step, I wanted to see a defined local resistance breaking to the upside on a pick up in relative volume. We saw that as well and you can see on the chart below exactly when and where I entered.
My first reference point was the $427.76 pivot level, which we cleared with a close above. This sets up my trade for a first profit target at the $485 level and second target being the all time highs at $588. In other words, still significant upside potential for anyone considering a buy at this point in time.
📊 Fundamentals 📊
Now important to note that my trade is based solely on the technical factors in this case. Fundamental analysis is not so encouraging with the projected growth being conditional on the world transitioning fully to a working from home environment.
But not only that, Zoom needs to be the best virtual conferencing platform out there. Which won't be easy to say the least with significant competition from Microsoft, Cisco, Google, Amazon, Apple, etc. The increasing competition will put pressure on growth and profit margins. And the sooner we start transitioning into a post-pandemic environment, the worse for the company as the growth we have seen is solely due to this external factor.
📝 Summary 📝
I'm currently long Zoom stock based on price action and order flow. My profit targets are defined for the short to mid-term. I do not recommend a long term hold for reasons explained in the above paragraph on fundamentals.
Zoom Video Communications Is BullishIf the pattern is confirmed to be an expanded flat then we will see the price head to $588 in the coming days. There is also a possibility of price breaking the last low at point c first before heading north, that's how this pattern sometimes behaves. Don't miss this. Like and share this chart with all your friends so they can benefit from this analysis. Thank you.
ZM 382 break on watchI am still in this trade from my initial post on on Dec 29. Check out the two posts below. We now have another opportunity to enter or add to an existing position. Price has run up into 382 fib resistance. If price can consolidate here and break above 412.. a push to 425/440 and 470 is possible. ZM has earnings on Mar 1st which may provide a longer term momentum catalyst. ZM is also held in two ARK funds which provides conviction for many trader/investors.
Additional Info:
I am an intraday scalper and short term swing trader of stocks & Futures using options and equity.
I focus on high volume momentum stocks in strong uptrends.
My time frame is between 5minutes to 5 days on most trades.
I scale into positions and scale out of positions as my targets are hit.
I always trail my stops after T1 is hit to reduce risk and lock in gains.
If my post is on a Weekly/Daily/240M chart the idea is a swing trade.
If my post is on a 60M chart or lower the idea is a day trade.
Day trades can turn into swing trades if the stock is strong.
All trades should be supported by market direction.
Treat my posts as trade ideas and not signals.
Traders must trade using their own back tested trade plan and rules.
Traders must plan risk first and profits second.
Happy Trading!
Zoom Swing If we can hold the 430 area, we can expect a gap fill to around 445. We did see an inverse head and shoulders pattern play out and were sitting at the neckline.
ZM entriesSecond entry on ZM today marked by black line. Bought on pullback. Will hold until trend changes. Until then I move my stops up on a weekly basis.
Zoom Zoom Zoom, Are you Ready?Daily chart has been on a slight downtrend which on the higher time frame (Weekly Chart) shows a slight consolidation cycle into the higher time frame. Price action has reverted back to its mean on the Daily which is the 150 SMA, which reflects the higher time frame middle BB. Weekly chart still in tact as far as an uptrend, daily chart has broken out of its consolidation cycle and beginning to set up for another leg up.
For ZM Bull: We need to hold the line at $486 to take overZM needs to pass $433 first and stay strong above $475 then we will see ZM going to pass ATH
Just a quick ideaRight now would be a good entry point, since this is the new way companies and businesses are communicating with their employees this might be a good long term investment
Dunno May be Close to Landing PadWeekly chart. Weekly charts often show you the true angle of the run up (or monthly)
If this is a parabolic arc pattern, most pull back 50% to 62% during correction mode, or somewhere in between as well. It is possible to fall back deeper. Arc patterns do not usually "Blast off" when they hit their level either as other stocks hit a sweet spot and Boom, off they go. Patience would be required perhaps as zoom had a steep rise up..
If this is an arc pattern, there can be volatility for an extended amount of time..
Just an observation and not a recommendation
Watching for continuationWe caught some great lottos on Friday, tomorrow watch where this opens, if it gaps up to trendline watch for pullback to yesterdays HOD or 409. From there I think it will try and test that trendline.
Bullish on ZM target 600-700 by March-AprilMid-term target 600-700 on ZM
Short term target for February 460-480
Key pivot: 420
Targets above 420 are 434, 450, 460, 480
This monster is about to wake up.
Broke out of a flag Friday, we either see continuation Monday or a pullback to retest the breakout.
Zoom Breaking out of downward channelI'm a noob and would like some feed back on this daily chart set-up and analysis. To me looks it like zm has broken out its downward channel since october highs, broken a little resistance at $400 and has momentum going into earnings on 3/1/21, possible entry on the next pullback? Feed back and criticism would be greatly appreciated. Thank you.
