ZM was all the rage in 2020 for obvious reasons. Here in the waning weeks of 2021 it may serve as a tax loss selling opportunity for buyers.
Very simply, this company is over valued but also very relevant to the future, business-wise (Captain Obvious). Due to the valuation I have only used it as a temporary vehicle.
As to the chart, it’s in a pattern that could imply a bounce. If that happens (1st step is to take out short-term resistance at 290) the pattern measures to 330, which conveniently coincides with the down-trending SMA 200. So to be clear, if successful it’s a seasonal bounce thing, not a buy and hold thing. A gap would fill around 340 so that could be in play as well if it gets to the 330 target.
I will not be very tolerant (limiting downside to 270 at worst) of it as I already have a couple other seasonal trades going (BB and FTEK) and as is usually the case, they are not taking off to the profit heavens (yet, anyway). Down-trending stocks need to have tolerance limits because that is the major force.
ZM is pulling back today but RSI is positive and MACD negative but constructive. FYI for anyone to consider or ignore as they see fit.
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.