Let’s take a break from the silver hysterics and consider whether or not this whole damn stock market is going full frontal casino. Today was the 3rd day in a row that Fidelity’s little hamster fell off his wheel and the gears seized up during the first 15 minutes of US market action. Something is in this market and it is mucking up the works but good. Beyond that, I am clueless.
But it feels like a mania of some kind. Or rolling manias roving across the markets caring about momentum and not caring in the least about value. Hence…
ZM, the massively over valued and massively growing video meeting stock has been on personal watch per NFTRH’s Stocks of Interest segment ever since I sold it near the highs last year.
ZM has broken out of a wedge and is dealing with the down-sloped SMA 50. I had been waiting for it to hit the SMA 200, but in the event that the January low was such a test already ZM can eyeball the gap up in the resistance zone.
The thing that has me interested is that it went up on volume and the downward flag is on diminishing volume. The minor caution point is that it did not fill the gap from August. Just a low priority idea for anyone interested. If this flag resolves upward I’d expect a gap fill around 480 at least. At best a resumption of its bull market. But be aware that the SMA 200 can also easily be tested for real and that August gap filled.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.