This poses the question, is stock a story of the past or is it a buy-the-dip situation?
Well from a valuation perspective and if we believe the analyst consensus the stock should be valued at around $469 (+20%). However, a closer look at the ratios supporting this thesis I can only find very little sense of buying the stock. But this seems the case for many stocks these days. So my personal conclusion would be, this is a stock to swing trade and not for investing.
What I am looking at;
* The stock only started significantly moving in March 2020, so this is my time frame
* On this timescale the levels ( esp . 78% and 61%) have shown significance in
* The stock is was approaching the 50% Fib levels in Jan, which coincides the gap higher following Aug 2020 , and is reversing since towards the 61% level
* Price seems to have positively broken a convergence of the longer-term uptrend and the correction that started in October 2020
* seems to have bottomed out showing a reversal trend forming
* is in the 50 levels, i.e. in neutral territory
* On the upside I see resistance around $430 (R1), $470 (R2) and $500 (R3) . Personally I believe R2 is achievable, however R3 and new all time highs won't be unless something changes materially.
I will be looking to trade the stock pre March release;
Buy Limit $395
TP $469 (Analyst est.)
***The comments above are my personal view and do not represent investment advice. Risk management is key, do not trade what you cant afford to loose***
$370 levels seem to have acted as support.
Will not buy back in for now and see how the stock develops.
So, my take on it is that we should wait for higher time frame and time wise correction to be completed and then enter long into it even if we have to buy at some higher levels.
Disclaimer: This is my views only based on my chart study and not a recommendation for buy or sell.
The stock stared weakening the moment the vaccines were announced and considering the massive and parabolic bull run this kinda makes sense. The world is longing to get back to "normal", i.e. less Zoom and more physical contact. As a result of this underlying growth of ZM will inevitably start to slow and this will have an effect on already overstretched fundamentals.
So in the long mid to long run I agree with you, ZM has probably seen its peak. However, my trade is based on the assumption that the stock won't go quietly and that the "back to normal" is still a few months out at best.