Hello traders and investors! Let’s talk about ZOM today! It’s been a while since my last analysis, so we have some points to update. And if you missed my last public analysis, the link to it is below, as usual.
First, ZOM reversed the short-term bull trend that we discussed in our last study, shortly after a breakout of a key point at $ 2.34. Now the trend is bearish, as we have lower highs/lows, and the 21 ema is pointing down.
Today, it lost the support level around the $ 1.94 (red line) by doing a gap. If this gap is going to be filled in the next two days, it could be an Exhaustion Gap, and work as a reversal pattern for ZOM.
Now, let’s see the daily chart:
In the daily chart the situation is not as horrible as it looks like in the 1h chart, as ZOM is clearly still inside a congestion. As it is normal in congestions, the price could seek its base and the situation would still be under control. Meaning, ZOM could hit the $ 1.48 again, and this would be a buy opportunity.
Another point worth of noticing is the low volume, which indicates that this is not a real sell-off. If it were, the volume would be higher.
ZOM did a false breakout from the $ 2.25, which was the key point we discussed in our last analysis, as it closed above it, then in the next day it did a classic bearish engulfing, which pushed the prices down.
Now, ZOM needs another clear pattern to reverse the bearish bias, and make it retest the $ 2.90 again. Any good reaction, with good volume will do. I like the fact that the bullish candlesticks have higher volume than the black candlesticks, on average, in the last few days.
This could indicate a possible rally next; we only need some confirmation. And remember to follow me to keep in touch with my daily studies and updates on stocks, and if you liked this idea, remember to support it with your like!