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!
***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.***
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!
***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.***
