Zm
NASDAQ Expectation on news correlates with uptrend and crashesI checked the news on the periods where the market reached peaks and crashed for the last couple of months. The crash on Sep 2nd happened after an insane euphoria triggered by the Apple and TSLA splits and the earnings by ZM. The market crashed all the way into late September. A subsequent rally was fueled by the expectation of the Apple event and Prime day. But as soon as those events took place the market crashed. The elections started the third wave which was then crushed by the news of the vaccine. Now it seems that we are in noman's land.
But I would advise people to be careful of these expectation-driven rallies as they tend to not end up well.
Zm bearish ZM Bearish – Lower high in 1D chart .
For this play to work we need :
• Zm to go back to 420 – 425 and reject , come back down from here .
• Zm to go back to 436-440 ( Red line ) and reject .
** This trade will not work if we break above 440 .
Target for this trade :
• 1st Target 400 -397
• 2nd TG 390
• 3rd TG 370- 368
• 4rd TG 345
• Last target 300 – MA 200 In daily chart
How to play
1. Debit Put
• buy 400 put and sell 390 put Nov 27
• buy 380 put and sell 370 put Dec 4
• buy 370 put and sell 360 Put Dec 4
• BUY 350 – 340 Put Dec 18
2. Credit call
• Sell 430 call buy 420 call Nov 27 . ( IF ZM reject at 420 – 425 )
• Sell 450 call buy 440 call Nov 27 ( IF ZM reject at 436-440 )
3. Buy 400 Put or 420 put NOV 27 or Dec 4
Last few thing :
• Don’t GO ALL IN
• Only risk what you accept to lose or cut loss if this trade not go in our favor.
• Take profit along the way
ZM: Vaccine UpdateVaccine Update: PFE announced extremely positive results today. Sending ZM plummeting and disregarding the current technical trend.
This isn't surprising as the value of the stock was highly speculative on the uncertainty of our future and covid.
Now we are entering a phase called "price discovery" This is when price action searches for an agreed price between buyers and sellers. It usually involves quick and sudden movements to new price levels and a lot of volatility.
Right now our first objective is to confirm our horizontal trendlines before we consider regaining any form of uptrend.
News will push this stock up or down and if you are in ZM you should be monitoring your positions closely!
NASDAQ:ZM
Zoom Opens Strong but into ResistanceQuick update on how ZM opened up today. It looks like we are breaking out of one of our biggest concerns, the rising wedge we developed over the last few days.
I'll continue to update this chart as it looks like we could be regaining our important trendline structure.
NASDAQ:ZM
Zoom 1hr Chart | Heavily Bearish, No Long Positions AvailableChart Summary:
The bulls did the best they could to hold the main bull trendline on the head of the head and shoulders. After that the bears feasted and heavily and broke through 3 trendlines with relative ease. We are now working on the 4th trendline which I do expect us to break through with similar velocity. If bearish momentum declines significantly, my buy zone could be potentially raised to the last trendline which would be around the 430-475 level, depending on when we are test it.
This was a chart requested and I am not recommending taking any position on this stock. We have a long way to go down before we really start looking at buying opportunities. We have never filled or tested the GAP up from last earnings but it's unclear to me if we will. However I think it's likely we drop down to the redzone with similar velocity we have been having. I do expect a lot of choppiness and depending on what's going on with politics and lockdowns, we could see a lot of bullish velocity from here and recapturing of some bullish trendlines
I'd love feedback on this chart from the community. I love recommendations and discussing possiblities.
Zoom Testing Support Level Retraced back to the previous support level of $460, after strong selling pressure over the last week. Looking for confirmation of this support zone for the uptrend to carry prices higher.
Upcoming earnings on December 3 should help to bring additional volume to this trade in the coming weeks.
If this support can hold:
PT 1 = $490
PT 2 = $525
PT 3 = $550
Zoom up 750% YTD and a market cap of $165 BILLIONZoom now has a market cap of $165 billion. It's 750% YTD and trades at a price-to-sales ratio of 126. Wow! I don't remember the last time I saw a stock rip like this with that kind of valuation and market cap. It is truly impressive, but also possibly slightly overextended. I have no position, but am watching closely. Zoom has become THE barometer for economic activity and work-from-home trends.
A price-to-sales ratio of 126 makes no sense to me. Even if they double their revenue over the next 12 months, they will still have a PS ratio of 63. And then if they double their revenue AGAIN, they will have a PS ratio of 31.5. This is possible, but those are some loft expectations. But this market knows better than I and it seems a lot of people have strong conviction in these companies to continue expanding and growing. I wrote something similar about Twilio the other week and it's already up a cool 10% since. No matter how overvalued you think these companies might be, the opportunity is perfect for them to continue growing, to make acquisitions, and to invest in new areas with cheap capital.
One thing to keep in mind is that Cisco has a market cap of $165 billion. Yet they pay a dividend, have cash, and do almost 10x more in revenue. However, Cisco is not growing as fast as Zoom. The question becomes: will Zoom keep growing and taking market share from Cisco and others? Let's find out. I'll be watching and thanks for reading. I hope you found this interesting and insightful.