ZOOM VIDEO COMMUNICATIONS-A (NASDAQ:ZM) Reveals Intriguing Technical Aspects. Here's What You Need to Know.

We've identified ZOOM VIDEO COMMUNICATIONS-A (NASDAQ:ZM) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:ZM for further developments.

Zooming in on the technicals.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, ZM scores 7 out of 10 in our technical rating. ZM has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The long and short term trends are both positive. This is looking good!
• ZM is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
• When comparing the performance of all stocks over the past year, ZM turns out to be only a medium performer in the overall market: it outperformed 48% of all stocks.
• ZM is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so ZM is lagging the market.

Check the latest full technical report of ZM for a complete technical analysis.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ZM is 8:

Besides having an excellent technical rating, ZM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 73.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 69.85, a Stop Loss order could be placed below this zone.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.