4ZM trade ideas
ZM LongIf this is consolidation in uptrend, the next target is FIB#1.6 = 723
PlanA: Trendline Break + revisit
Entry 413
stop 385 below up trendline
Target 585
PlanB: Demand Zone below Consolidation
Entry 370
stop 340
Target 723
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ZM : Zoom in correctionHype around Zoom is being replaced by hype around Moderna.
P/E for Zoom declines from 600 to 450 as earnings grow. Forward P/E is currently estimated at 150 projecting further earnings growth. That's a lot! Forward PEs for Salesforce and Netflix are 65 and 56 respectively.
If Zoom earnings grow 2x than projected and stock price declines by 33% then PE comes to 50 (years of earnings to justify the stock price). At least comparable to other hot techs.
And what the chart tells us about possible end of correction in Zoom?
Nearest level is probably 310-325 and more distant one is 260-265.
ZMCrushed earnings and still sank. Its okay, It is now setting up for a reverse head and shoulders if support holds. I am expecting a bounce tomorrow and in the next 2-3 weeks Im sitting on a move back to highs.
Zoom earnings Prediction After the market closes today ZM will report their quarterly earnings. A remarkable stock none the less. But the primary catalyst for their success during these extraordinary times has been the very pandemic itself. With that being said much success has begun to arise for MRNA and PHE for their promising vaccine results. And talk of discussions of the vaccine are in the works. (Positive vaccine news .. the sooner schools open) Which bottom line leaves me to believe no matter the out come for Zooms quarter, i predict it will fall.
And from the Charting stand point, a cup and handle pattern seems to be in the making, which only gives me that much more confidence in a likely decent.
Zoom Resistance Levels before earnings Zoom has currently bullish riding an upward trend. Look for it to pass the 474 resistance pre-market and fill the gap to 503. It is trading above the MA40 and MA13. For best risk management practices, watch for the shift after the earnings are release monday evening.
$ZM bearish count$ZM 4H Chart
For $ZM I have a potential bullish and potential bearish count. My primary bias is currently my bearish count
Looking for a pullback to my zone between 478 and 505 for a potential reversal to wave C
Above 504.44 I will start to re-analyze
Target for wave C is marked at around 300
Short Term Decline But Long Term Success From a fundamental standpoint, with Covid causing people to work from home, and social distancing from family, Zoom is a popular choice for video messaging/conferencing. Long term I see Zoom increasing in value as the work from home trend will not be going away any time soon, even if there is a Covid vaccine or treatment with 100% effectiveness. From a technical stand point for the short term, I see Zoom dropping as it is overbought as indicated by the RSI. On the 45min chart, ZM has an RSI of 75. However the MACD still shows room for growth so Monday might be a good buy in point for those who would like to short the short term decline. There are sell signals coming from Divergence+ and Bollnger bands are close to crossing setting off another sell signal. I will be buying in Monday to put Zoom short term. Will hold the position no longer than a couple weeks. The position I will be most likely buying is $455 a share by 12/18.
What are your thoughts on Zoom? Comment below & give a like if you agree with this analysis.
