Can Zoom (ZM) Hold This Key Level?
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Zoom Video Communications, Inc. engages in the provision of video-first communications platform. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products.
Take a look at the 1-year chart of Zoom (NASDAQ: ZM) below with added notations:
After putting in its 52-week low back in May, ZM is now holding that same low this week, roughly around the $80 level (blue). If the stock can manage to rally off of that mark again, a run back to $95 could be in the cards, at minimum. However, a break of the low likely signals lower prices to come.
The Tale of the Tape: ZM has key support area around $80. A trader could enter a long position at or around the mark with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
