Technical Analysis – Could Zoom stock resume its rally during the vaccination campaign?



Zoom video’s stock seemed poised to start a downtrend after finalizing a bearish head and shoulder pattern below the neckline and the 380.00 level at the end of December. The bearish cycle, however, did not last long, and the price is currently set to dismiss the negative trend warning, recouping its lost ground above that line.

A close above the Ichimoku cloud and the 440.00 number, which is slightly above the 38.2% Fibonacci mark of the October downfall, could raise buying interest, likely sending the price up to December’s peak of 484.45. Beyond that, the bulls may head for the 540.00 resistance area.

Still, with the Stochastics hovering within the overbought zone and the RSI approaching its 70 level, some caution should be warranted. The bears are expected to come into play if the price retreats below the 392.80 – 365.00 region, while a step below the 200-day SMA at 339.88 would resume fears of a down-trending market.

Summarizing, Zoom’s stock is trying to correct the bearish trend formation, which signaled the end of the impressive rally in December. A decisive run above the cloud could add credibility to the recovery mission.

Latest News

Technical Analysis – US 500 index sustains steady hike into uncharted waters


Disney earnings: It's all about streaming – Stock Market News


Amazon Q1 earnings preview: guidance and stock split – Stock Market News



Apple earnings: buybacks might boost stock as iPhone sales seen slowing – Stock Market News

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.