Zoom - Top? (Strong Short)
Updated
Short Term:
Momentum dying
1) RSI divergence - As another user noted, RSI has been declining since September 1 high (88) to September 23 higher-high (76).
2) OBV - On-balance-volume is currently testing the $460-470 support, if we break thru, next line of support is $420. Hoping for a strong gap down tomorrow AM.
Stepping back, a fixed range volume profile shows next high volume nodule to be around $275-300, and going back to February 3 which marks the date when volume first started pumping in anticipation of the pandemic threat, the major point of control is $120. Technical analysis aside, 'hope' for a vaccine which will heavily bite into Zoom's thesis (stay at home)is ramping up. Dr. Anthony Fauci told Congress yesterday (ZM top) that there’s “growing optimism” that scientists will find one or more safe and effective vaccines by the end of the year or early 2021. I imagine this played a significant role in the reversal on the lower time frame charts yesterday, and sharp continuation of that reversal today.
Momentum dying
1) RSI divergence - As another user noted, RSI has been declining since September 1 high (88) to September 23 higher-high (76).
2) OBV - On-balance-volume is currently testing the $460-470 support, if we break thru, next line of support is $420. Hoping for a strong gap down tomorrow AM.
Stepping back, a fixed range volume profile shows next high volume nodule to be around $275-300, and going back to February 3 which marks the date when volume first started pumping in anticipation of the pandemic threat, the major point of control is $120. Technical analysis aside, 'hope' for a vaccine which will heavily bite into Zoom's thesis (stay at home)is ramping up. Dr. Anthony Fauci told Congress yesterday (ZM top) that there’s “growing optimism” that scientists will find one or more safe and effective vaccines by the end of the year or early 2021. I imagine this played a significant role in the reversal on the lower time frame charts yesterday, and sharp continuation of that reversal today.
Note
9/25 Target: $450 -- expecting gap down tomorrow AM with lots of selling into weak hands 'buying the dip' forming a green candle closing at or near the close today (9/24).Note
Bulls who were nowhere to be seen yesterday finally decided to show up. Or, could be a short shakeout.Note
Showtime. Next target $480Note
The song is the same, the notes have just been re-arranged. Lots of market manipulation in the tape today. Hop into the 5-m charts and look at the size of the candlesticks relative to the volume when trending up vs down. The momentum fade is readily apparent. Classic pump-and-dump trading session. That said, this stock is known to pop on Mondays. Closing short to take profit. Will re-enter next week.
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