Zoom Video Highlights Pullbacks Across Software Space
Zoom Video Communications has clearly benefited from the coronavirus pandemic, but it’s not alone. The crisis has also lifted several other software and cloud-based service companies. Many of them, including ZM, pulled back last week as sentiment swung toward the reopening trade. This week they could be worth a look as new daily infections shoot over 80,000 for the first time.
First, ZM has formed a high basing pattern above $500. This same level was roughly the top of a bullish triangle that it escaped on October 15, so we could be seeing old resistance turn into new support. The stock is also holding its 21-day exponential moving average (EMA). It’s not much of a pullback, but for a name with the kind of strength ZM has shown, it could still present an opportunity for trend followers.
There are others:
TWLO
: The cloud-messaging stock has had some powerful earnings beats and guidance raises. It’s now pulled back following a breakout to new highs on October 2 and is trying to establish support above its old peak around $289.
APPS
: The mobile-software stock has surged more than 600 percent since May. It’s now retraced about 23.6 percent of that move and is trying to hold the same $33 zone that was resistance a month ago.
EXPI
: The provider of cloud-based real-estate software is retesting its 50-day simple moving average (SMA) after a 600 percent rally. It’s also near the $43 level that was resistance in August and September.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, ZM has formed a high basing pattern above $500. This same level was roughly the top of a bullish triangle that it escaped on October 15, so we could be seeing old resistance turn into new support. The stock is also holding its 21-day exponential moving average (EMA). It’s not much of a pullback, but for a name with the kind of strength ZM has shown, it could still present an opportunity for trend followers.
There are others:
TWLO
: The cloud-messaging stock has had some powerful earnings beats and guidance raises. It’s now pulled back following a breakout to new highs on October 2 and is trying to establish support above its old peak around $289.
APPS
: The mobile-software stock has surged more than 600 percent since May. It’s now retraced about 23.6 percent of that move and is trying to hold the same $33 zone that was resistance a month ago.
EXPI
: The provider of cloud-based real-estate software is retesting its 50-day simple moving average (SMA) after a 600 percent rally. It’s also near the $43 level that was resistance in August and September.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
