Will ZOOM VIDEO COMMUNICATIONS-A Break Out? A Technical Analysis Perspective.

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.

What is the technical picture of NASDAQ:ZM telling us.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall ZM gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ZM is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• In the last month ZM has a been trading in the 65.87 - 71.15 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• 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 44% of all stocks.
• ZM is an average performer in the Software industry, it outperforms 55% of 282 stocks in the same industry.
• 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.

Our latest full technical report of ZM contains the most current technical analsysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:ZM currently has a 9 as setup rating:

ZM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 69.16. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 68.51, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:ZM?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.