5ZM trade ideas
Zoom: Breaking lower from a wedge formationZoom - Short Term - We look to Sell at 106.91 (stop at 126.13)
Broken out of the wedge to the downside. The medium term bias remains bearish. We have a Gap open at 106.91 from 12/07/2022 to 13/07/2022. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 106.91, resulting in improved risk/reward. Expect trading to remain mixed and volatile.
Our profit targets will be 61.07 and 50.00
Resistance: 106.91 / 124.05 / 127.37
Support: 97.09 / 79.03 / 60.97
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ZoomThe stock presents a pattern of change in trend (HCH) in a weekly timeframe, in addition to this, the RSI indicator is presenting increasing highs within its movements represented by an upward trend line.
We recommend buying at current prices with a stop loss at 78.80 and a take profit at 125.00 and as a second target in case the HCH projection is met, a take profit #2 at 205.00 USD per share.
ZM ZOOM Possible Long entry targeting 2-3X closed at 99.5It may takes sometime! but compared by others ZM had different bullish RSI for a while and MFI at low levels too. bearish daily close on Friday and can go down even to 94.5-86.4-81.6-73.8 or lower which shall be good spots for long term target but again its earning move so if earning better than expected this could lead for strong bounce even for short squeez targeting 136--149-181 and if earning missed up then it will speeds falling to new bottom . So the idea is Bull long call with put protection. could be strangle too . will take this trade by next week with updated options strikes . if earning is soo good its possible close up all higher gaps with initial target between 247-273 . note this stock is falling from 588
ZM Bottom BuildingThis young company benefited greatly from the pandemic but like all of the some 100+ companies that had huge revenues in 2020 - 2021, it was not sustainable due to the artificial inflation of stock prices via stimulus checks. Since the stimulus was a manipulation of the monetary system and the financial markets, there is no way any firm could manage the situation. So the stock plummeted due to lower revenues and earnings.
Now, it is definitely building a bottom. It is not complete, and I always advise waiting for completion of a bottom because it is emotionally draining for most investors or position traders to watch the stock fall further and wait for it to recover and move up higher thereafter. It takes a lot of discipline and confidence to hold in a final run down in a bear market. So avoid the risk and wait for a completion of the bottom.
WATCH $ZMBullish
Fundamental
- High inflationary macro environment / fear sentiment
- Earnings don't looks favorable coming quarters
- Funds Accumulation
- Decent earnings
- Decent PE
- Decent PEG
- Positive P/FCF
- Weak Sector / Industry
- Covid lock down theme ?
Technical
- Momentum Theory Indicator - Seems like bottomed and making a reversal trend momentum
- Price action formation ( falling wedge )
- Yet to break downward Trend line
- Price still below 200MA
- Price above POC
Entry idea
- Entry idea was based on few confluences
- Rejection / retest of the trend line
- Price below 200 MA
Stop loss depending on entry and risk appetite. But always set meaningful stops.
”I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.”
Cheers and happy trading!
ZM - inverse Head & Shoulders in the making?I am watching to see if a breakup will materialise, and when it does, a high volume breakup will greatly improve the odds of this pattern succeeding.
This pattern is formed over 3.5 mths+ which is rather short (6 months or more prefered), meaning it could face more near term resistences on the way up. If it could go above 135 eventually then the coast will be clearer.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
ZM 6/5/2022ZM
Zoom Zoom, it can’t go any faster downhill.
A lot of money was made here during Covid for obvious reasons. The party is over and I’m sure many “Investors” aka bag holders are still holding on.
ZM’s Uptrend took price from 71 all the way to about 589.
From there price first broke down thru the 50 ema but found support from the 200ema. It bounced price back above 50ema but that was short lived and the move was deemed a false breakout.
This led to the price breaking below the 20ema and ending the Uptrend. Price now enters a sideways market.
Price fell to around 288 where it bounced but failed to make higher high twice. A Distribution stage and Double Top pattern is created but pending confirmation.
Sept.’21, price breaks down from side-ways range. Distribution stage and Double top are now confirmed.
The next move is a pullback looking to turn Support into Resistance. At that time, we also have an Overbought Stochastic reading. This is the first opportunity to enter trade short. Overbought stochastic + pullback to resistance area + downtrend = Short trade.
After the pullback, price enter downtrend and saw price go from 291 all the way down to 96.
At 96, we saw another small pullback to dynamic resistance at 50ema with an overbought stochastic. This was the second entry to short.
Price made a lower low to 83 and pulled back once again to dynamic resistance at 50 ema. We again have an Overbought stochastic reading. This will be my cue to enter trade short
Will be entering trade short.
Entry: 109.42
Stoploss: 128.80
Target: 61.29, +18.65%, 2.33 RR ratio
Zoom Video Communications, Inc.On the above weekly chart price action has corrected over 80% since the sell signal back in late 2020. A number of reasons now exist to be bullish , including:
1) The ‘incredible buy’ signal has printed.
2) Price action and RSI resistance breakouts.
3) Price action is back-testing past resistance as support.
Is it possible price action falls further? Sure.
Is it probable? No.
1st target $300.
Good luck!
WW
Type: Investment
Risk: <=6% of portfolio
Timeframe: 6-18 months
6/1/22 ZMZoom Video Communications, Inc. ( NASDAQ:ZM )
Sector: Technology Services (Packaged Software)
Market Capitalization: $31.645B
Current Price: $107.65
Breakout price: $127.70
Buy Zone (Top/Bottom Range): $106.60-$71.30
Price Target: $189.60-$204.00 (1st), $249.20-$278.80 (2nd)
Estimated Duration to Target: 181-186d, 300-312d
Contract of Interest: $ZM 1/20/23 125c, $ZM 6/16/23
Trade price as of publish date: $15.90/contract, $27.10/contract