ZOOM COMMUNICATIONS INC (NASDAQ:ZM) Technical Analysis observations.

Our stock screener has spotted ZOOM COMMUNICATIONS INC (NASDAQ:ZM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:ZM.

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

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.

We assign a technical rating of 8 out of 10 to ZM. Both in the recent history as in the last year, ZM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• 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.
• Looking at the yearly performance, ZM did better than 82% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• ZM is an average performer in the Software industry, it outperforms 59% of 278 stocks in the same industry.
• In the last month ZM has a been trading in the 77.88 - 92.80 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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 8 as setup rating:

Besides having an excellent technical rating, ZM also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 82.04, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:ZM

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation 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

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.