Technical Signals Point to a Possible Breakout for ZOOM VIDEO COMMUNICATIONS-A.

Our stock screener has flagged ZOOM VIDEO COMMUNICATIONS-A (NASDAQ:ZM) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:ZM for potential movement.

In-Depth Technical Analysis of NASDAQ:ZM

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.

We assign a technical rating of 8 out of 10 to ZM. 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.

• The long and short term trends are both positive. This is looking good!
• ZM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so ZM is lagging the market slightly.
• In the last month ZM has a been trading in the 66.76 - 71.45 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 compared to the yearly performance of all other stocks, ZM outperforms 62% of them, which is more or less in line with the market.
• ZM is part of the Software industry. There are 282 other stocks in this industry, ZM did better than 57% of them.

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

Why is NASDAQ:ZM a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:ZM this score is currently 9:

ZM has an excellent technical rating and 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 70.46. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 69.21, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ZM in the last couple of days, which is a good sign.

How can NASDAQ:ZM be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.