3 Ways to Trade Zoom for a Fast 20% Gain3 Ways to Trade Zoom for a Fast 20% Gain
First Impressions 🤔
Zoom’s daily chart paints a story of prolonged consolidation. After its post-pandemic plunge, the stock has been grinding sideways between roughly $60 and $90 for years.
As an investor, you might feel a bit of relief, no more wild swings, but also some itchiness: “Is this the calm before the storm?” 🌪️
At first glance, the sideways drift signals indecision, but the tightening range since May hints that something’s about to give.
Pattern Recognition
Short-Term Falling Channel Break
Since May 2025, price carved a small downward sloping channel, from about $82 down to $71.
This mini-channel is textbook: two parallel trendlines touching a series of lower highs and lower lows.
A channel like this often resolves with a quick breakout, and indeed, we see price poking up through the upper trendline. Breaks upward suggest buyers are stepping in , momentum often carries price at least the channel’s height (~$11) above the breakout which is the resistance zone!! This is what I love of Chart Patterns.
Key Support & Resistance
Support at $59–$60, Major floor since mid-2021, a solid zone where institutions historically piled in.
Resistance at $89–$90: The ceiling of the wide trading rectangle, broken this would open a clear path to $124.
Rectangle (Accumulation)
Zoom has been trading inside a large rectangle ($59–$90) for more than two years. This is an accumulation pattern: sellers above $90 have repeatedly stopped rallies, but buyers at $60 stand firm. A break above $90 could trigger a 30–40% rally , while a drop below $60 would signal fresh bearish momentum (not our base case, given fundamentals).
Analyst & Fundamental Context
Most analysts sit around a $95–$105 consensus target, slightly above the current price but also the resistance level. Their medium-term thesis rests on steady subscription growth , upsells of Zoom Phone and Zoom Events , and margin improvement as travel rebounds strengthen corporate spending.
On one hand, the chart’s sideways chop aligns with analysts’ view: slow but steady progress. On the other, the short-term channel break suggests a tactical bump toward $89 may come quicker than fundamentals alone justify.
Investment Ideas, with clear entry and exit levels
Here are three ways to play the setup, tailored to your style and patience:
1. Channel Break Entry (Tactical, FOMO-Friendly)
Entry : On a clean breakout above $72–$73 (the small channel’s upper line)
Target : $89 (20% upside)
Stop Loss: $71 (mid-channel) → Risk ~4%
Rationale : Quick move, tight risk; $74–$75 is now a micro-support where institutions could jump in. 📈
2. Patient Pullback (Medium-Term, Low Stress)
Entry : Near $60 support if the stock dips back
Target : $85–$90 (40% upside)
Stop Loss : $55–$57 → Risk 5–8%
Rationale : Buying at a rock-bottom area maximizes reward/risk; ideal if you need some time to have cash available.
3. Confirmation Above Rectangle (Momentum Play)
Entry : On a sustainable close above $90–$91
Target : $120+ (30%+ upside)
Stop Loss : $84–$86 (inside box) → Risk 5–8%
Rationale : Classic breakout with guaranteed momentum, the next logical zone is the top of the preceding local downtrend or analyst targets which is much tighter. Anyway, a break would happen if there si something that shows that ZM has transformed and that would be the reason to see analyst moving the price to $120 instead of the current $95 to $100.
🚫 Bearish scenarios don’t align with Zoom’s growing enterprise revenue and profitability. This accumulation pattern screams “base for the next leg up,” not a continuation lower.
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Key Takeaway:
Zoom is coiled in a multi-year base and just broke a short-term falling channel. Whether you’re chasing a quick run to $89, patiently waiting at $60, or needing full confirmation above $90, the reward/risk looks skewed in your favor.
Happy trading! 😊
💬 Does this setup align with your view on NASDAQ:ZM ?
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