Next boom for Zoom? ARK thinks so! Zoom Video Communications, Inc. is an American communications technology company that videotelephony and online chat services through a cloud-based peer-to-peer software platform and is used for teleconferencing, telecommuting, distance education, and social relations.
Evidence of the fact that $ZM is a Covid-19 play: Zoom’s share price has dropped in the wake of positive news about a coronavirus vaccine. On 9th November, $ZM stock dropped 15% in pre-market hours and is down 32% since the news.
Despite this, in quarterly results released Nov. 30, Zoom beat company and analyst estimates for its fiscal third quarter, with revenue up 367% year over year to $777.2 million, representing its third consecutive period with triple-digit percentage growth.
It is clear that investors are worried about $ZM being overvalued, hence its massive sell off form its $580 highs, likely set by fears about whether the company can maintain its success after people return to offices and schools.
The hybrid (some working form home and some working in the office), is likely to stay for some time. Zoom is great as it is cheaper than in-person meetings, especially for traveling, faster due to less travel time and more convenient.
Interestingly, Cathie Wood has been buying Zoom significantly in recent months. ARK invest has began buying $ZM for its ARKK ETF just 2 days before its ATH. Since then, ARK has been ‘buying the dips’ significantly with Zoom. For example, buying $13,500,000 worth of shares in for its ARKK fund in early November when the stock dropped 25% in two trading sessions and buying a further $32,000,000 shares in early December when the stock plunged 15% after earnings. As a result, the weighting of Zoom in the ARKK ETF has increased form 0.99% in mid-October to 1.53% now.
Let me explain the technicals. Firstly, ZM has been trading down and has been bouncing of a downward resistance line from its ATH. Secondly, the price has now retraced the 0.5 Fibonacci retracement zone, taking the $100 low and $588 highs, and is now sitting between the 0.5 and 0.618 level. This zone is often used by Fibonacci traders as a buy zone after a retracement. Thirdly, the price is currently approaching $325, which is significant as a large gap was created here on big earnings. Highlighted on the chart by the red rectangle. Gaps are often filled, but this is by no means universally true. Thirdly, there is some support to be found in an upward trend line formed from price action between April and May. Fourthly, the 200 period MA is aligning with this trendline which could act as further support. Finally, the RSI is approaching overbought levels.
Taken together, what does this mean? This could signify a reversal somewhere in the green circle – this is an area of bullish confluence given the gap fill, fib retracement level, support of the upward trendline, support of the 200 MA and the oversold RSI
ZM trade ideas
ZM_Bearish ZM looks bearish and will need momentum after the large gap down in Nov that caused the LR to be bearish on ZM maybe a good time to get in right before earnings and see if it meets more headwinds...it may not find itself over 500$ in the next month...depending on market conditions ...tje earnings last quarter dampened the stock which technically the day before was very bullish...
A good discount price for Zoom Video Communications, Inc ZM!Zoom Video Communications INC with stock symbol ZM is at a major price level of $375.17 as of market close on December 24, 2020. Some thoughts on portfolio management and risk management for new traders and new buyers looking into trading this stock or hold the stock as a long-term investment. This is a good discount price for this stock; however, new buyers should be very careful because this correction may continue further. Buyers should watch for a true bottom before entering this stock. If the price enters the price level from $324.65 to $350.46, the stock may bottom in that price range or the stock may drop quicker and harder to a price level around $275. Remember the old saying, "Don't put all your eggs in one basket."
Thank you for reading! Remember to click "Like" and "Follow!"
Greenfield
Disclosure: Chart interpreted by Greenfield. Just a market opinion by Greenfield Analysis LLC for educational purposes. This is not a recommendation. Greenfield Analysis LLC has no investment in any of the securities mentioned in the article, and no plan to initiate a trade in any of the securities mentioned. Greenfield does not receive any compensation for this writing. Investment involves substantial risk. You should consider carefully before making an investment. Investment at your own risk.
ZM LongUptrend, EMA55/144 as support Zone
Wedge Breakout + revisit trend line
Entry 385
Stop 350
Target 500
I am not a PRO trader. I trade option to test my trading plan with small cost.
The max Risk of each plan is less than 1% of my account.
If you like this idea, please use SIM/Demo account to try it.
head and shoulders chart patternWith this formation, we would place a long entry order above the neckline.
Our target is calculated just like the head and shoulders pattern.
Measure the distance between the head and the neckline, and that is approximately the distance that the price will move after it breaks the neckline.
ZM Buyback is ComingI have a long bias on NASDAQ:ZM considering that this company has intrinsic retained value going into 2021 and should continue to have a nice valuation's as we use it in our day to working and school, furthermore I expect that it can pretty easily squeeze past 420 to higher prices as such low relative prices are often taken by market makers. My first target would be 447 followed by 520 and 559. These seem stretched but make sense as shares continue to be accumulated at these lower prices. ZM is at the lower bound of it's "COVID" range and it is evident the company isn't going anywhere in the near future. 383 is last weeks price where the most volume was conducted so I expect bullish action above this price and bearish action below.
💡$ZM 📈 My update on ZOOM💰+30%🏌️♂️📖I posted a trade idea on Zoom a couple of months ago, you should check that out on my profile before reading this post. Much of that analysis remains the same. I still have the same bullish technical outlook on Zoom. I spoke about how ARK Invest had been buying Zoom aggressively. They have increased their holdings by $168,000,00 since then. Zoom sits both in their ARKK and ARKW funds. They have bought Zoom pretty much everyday since they first bought in October 2020. Their holdings are now worth over $611,000,000.
📈 Interestingly, it appears that Zoom is trading between two parallel trend lines. Both of these trendlines are acting as resistance and preventing the price from moving higher, but now price is printing between these parallel trend lines. This may be due to the subjectivity of trading with trend lines -price action traders draw them differently. A nice green candle above the outer trendline could be what it takes for the stock to move higher.
🔎This is not financial advice. Always do your own research and due diligence. Always wait for directional confirmation before entering a trade.