ZM trade ideas
ZOOM looking very weak The darling of the pandemic lost a lot of its momentum over the past 40 days or so (vaccines and other prophylactics are certainly major catalysts for the drop). I think ZOOM is still a good stock for the long term but it already lost about 42% from ATH and still looks very weak here.
BEARISH SIGNALS
1. Price has been butting against support for several consecutive days. One could read this as strong support that will hold the price but the price hasn't been able to move up either.
2. Price is below the 14, 21, and 50 emas (50 ema is not on the chart).
3. Price is getting dangerously close to the 200EMA and 200 MA (not on the chart), which are normally seen as divisors between uptrend and downtrend. Price is still (barely) above both though so we cross that bridge when/if it we get there. This is something to be on your radar though.
4. There is a rounded top that formed. The price seems to be sitting on the neckline at the moment and could see a reversal from there but the other indicators + volume don't favor that scenario (one could also read the lower trendline as the neckline but since the price found support here for several consecutive days my interpretation is that this is the neckline).
5. MACD is way below 0 and not showing any sign of reaction at the moment.
6. -DI is above +DI (red line above green line) and the ADX crossed above 20, showing a potential strong trend is on its way (a down trend in this case).
7. OBV is in divergence with price showing opposing forces on the market. One will eventually win. Doesn't mean it has to happen soon or at a quick pace, but OBV and price are in disagreement.
SCENARIOS
1. Given these indicators I would be more prone to bet on price moving lower than moving higher. This doesn't need to happen soon (and doesn't need to happen at all) but that is what these chart indicators are showing.
To minimize losses if the price goes down, keep an eye on the 200EMA, which is just below the trendline, and the 200 MA, which is at around $315 at the time of this writing. If the price breaches and closes below the 200MA it could signal the beginning of a downtrend.
2. Volume has been very low so we could be trading on a range for a little longer and perhaps this scenario will change. However, at the moment things don't look favorable for a bullish move.
3. A retracement (move up) could happen as well since the price is holding at the neckline. If the price moves up, pay attention to the .236fib retracement level (around $399.57). If there isn't much volume at that point and indicators are still not showing bullishness you can sell some shares and wait to see what ZOOM does next.
Safe trades!
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***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
ZM completing WXY correction?I think Zoom is close with its long WXY correction. Resistances at $375 and $410. Rumors with S&P 500 inclusion would be the catalyst to reverse the current downtrend. Zoom almost filled the ER gap back in September. Relative volume today was high leading to signs that a impulsive wave may be ready.
ZOOM in troubleIf you read my previous analysis you would know ZOOM is in a very weak position here. Everything points to more downside coming. The technicals are the same as my previous analysis so you can check that one out (link below). The important thing here is that ZOOM broke below the rounded top neckline and is failing to move back up. I also added the 200SMA and the 200EMA to the chart. As you can see, ZOOM is sitting on the 200EMA now. If it breaks below it still has the 200SMA. If the 200 SMA is broken I believe ZOOm is in big trouble. I sold most of my shares this morning and bought XPEV, LI, TSLA, NIO, and PLTR (check my analysis on those so you understand why). Best choice I could have made; I am up an average of 10% on money that was sitting on the neckline of the rounded bottom and showing no strength to move up. If it doesn't react soon I will unload all of my shares.
Safe trades!
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
025. PIGGISH PLAY - Short Zoom Video Communications (ZM)This is going to be a very interesting day for equity markets. I just tied out one particular set of wave counts across all four major indices (ending diagonals/upward corrections for all), which means that we could see extremely violent selling in all corners of most markets.
Or, we will not.
Doesn't matter all that much because Zoom is tipping over the edge with or without the advent of the most blatant confirmation in global market history.
Yet, I'd bet that most folks will try and buy the obviously-not-a-dip despite all the warning signs. That goes for Zoom and any other stock that "seems" like a good buy over the next few sessions. Silly rabbits, stock buying tricks are for noobs, the greedy noobs, and the visually impaired at this point.
Thus we buy puts ("short," if you will).
See below for the contract specs:
PIG SPECS:
1) BUY at least 4 PUT Contracts with a STRIKE above 300, and EXPIRATION at 01/22/2021; (STRIKE > 300, EXP at 01/22)
2) ENTER PUT Position immediately after the price breaks below 335 intraday. If it passes this level via overnight gap down, I would wait for a 5-10 point pullback upward before entering. If it does not immediately attempt to close this overnight gap, then enter without worry - it's going to get slammed throughout the day for sure.
3) SELL 3 of 4 PUTS (or 75% of larger pos) at the first touch of 295.00 ($/share) and hold the remaining contract for excessive gains. I'd probably recommend a stop at 335.00 ($/share) in case you want to focus on other positions while letting this one chill. You'll be well ITM on the trade overall, even if the last contract expires worthless ) )it won't).
Bear winter is coming, best to have an overvalued Skype knock-off (albeit slightly better) in your back pocket.
- SkypePig
NASDAQ:ZM
TVC:NDX
TVC:SPX
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ZOOM | FIBONACCI LEVELSThe FIBONACCI levels show right now the weakness of this stock. The 0.5 level has been broken right now the price is below that level first touched in September 4, if you look the price tried to trade above this level and failed. The weekly chart has the 0.618 level at the same level than the 50 SMA.
We'll need to wait for a lower price and then have the target of $281.01 dollars. Let's watch the behavior of ZM and its levels right now the stock is below the 9,21,50 and 100 SMAs the 200 SMA is close at $317.40.
Has Zoom Lost its Zip?If any stock defined the age of Covid, it would be Zoom Video Communications. Now the videoconferencing disrupter could be showing that sentiment has truly moved on.
ZM has steadily trended lower since peaking near $590 on October 19. It fell on the November 9 vaccine news, and again December 1 -- despite a very strong quarterly report the night before.
ZM is now clinging to an early-September support level around $350. It could be a make-or-break level, with risk of further selling if it fails.
TradeStation data showed that call volume is down by about half since early December. (From about 147,000 calls per day to just 73,000.) That’s another sign of interest waning in the name.
Finally, valuations remain abnormally high -- even after its 40 percent drop. ZM's price/earnings is about 230 times and price/sales is more than 50 to 1.
(This chart features our Smart Relative Strength custom script.)
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$ZM Long ZM, after a brutal sell off all indicators have a green light of some sort of reversal here soon also getting very close to the .618 fib GOLDEN ZONE for Wave 2(Falling Wedge){Zig Zag} that's where i see it going and goes hand in hand from the gap that didn't get full filled. After gap filled i expect a hard bounce for a potential impulsive move for a wave 1 out of 3 alt count would be a bounce for B and then coming down for the .786 fib for C overall i see a hard bounce coming soon.
