Hello traders and investors! Let’s talk about ZOM today!
ZOM lost the most important support level at $ 1.48, as we discussed in our last study (link below this post), and when this happens, it’ll just head to the next support level.
This is a shame, as if ZOM reacted, it could’ve given a very interesting trade for us, but unfortunately it didn’t react. Now, if look at the daily chart above, you’ll see that it is just heading to the $ 0.85.
The $ 0.85 is a nice support level, yes, but it is not as good as the $ 1.48 could've be, as this is near the 21 ema in the weekly chart:
Now, ZOM is under the 21 ema, and it’ll require much more patterns to reverse the bearish sentiment in the mid/long-term.
The volume is not the best, and in order to react, we must see it increasing more. Remember: Volume is the fuel of a trend. But I agree that if it reacts near the $ 0.85, it could be a nice start for something great.
Let’s calmly wait for another opportunity on ZOM, and always trade carefully, as this is a high volatility stock, so, if you want to trade it, set your stop-loss very tightly to protect yourself.
And remember to follow me to keep in touch with my daily updates on stocks, and if you liked this idea, please, support it!
Looks like the 800 EMA on the daily chart acted as support. That also completes the trip ZOM started on February 1st. Volume on the daily chart is trending positively. Engulfing green candle. Hopefully, this is the start of the trend reversal we all have been waiting for.
Nathan_Black
⋅
@Larssonator, Yep, it could be, but ZOM must defeat yesterday's high to trigger this engulfing for good.
Either way, stay safe, mate!
Larssonator
⋅
@Nathan_Black, Ok I see, right now that is not looking too promising. You too stay safe, my friend.
tradingpro
⋅
Gap support around .64 is also looking good.
tradingpro
⋅
after that gap fill at .50
Nathan_Black
⋅
@tradingpro, Yep, you are right. If we don't se a very nice movement around the $ 0.85, then the gap area is the next target, indeed.
Thanks for sharing, mate!
InvestEmi
⋅
@Nathan_Black, I was about to point out the same. That 0.5$ gap is acting as a magnet right now. Fits much better with ZOM's fundamentals as well. If we see 0.85$ support fail, I'd put my bets on it trading back to 0.5$