On the evening of November 30, after Zoom Video Communications (ZM) reported earnings, Mike Paulenoff cautioned MPTrader members about the stock;
"My pattern work argues that ZM started a major correction off of its 10/20 all-time high of 588.54 into the 11/10 low at 366.28. The rally from the 11/10 low at 366.28 to today's high at 487.79 (+33%) to my mind represents an intervening recovery bounce prior to a second bout of weakness that completes the larger corrective process. Inability of ZM to react positively to earnings and to climb above resistance at 488 to 516 will keep intact my still 'incomplete correction' scenario."
ZM was trading at 454.80 at the time, and as we know that stock closed the year at 337.32, down 25.8% from Mike's Nov 30 alert.
Mike posted multiple follow-up chart updates during early December to keep our members informed about the developing technical set up in ZM, overlaid with discussion about Zoom's price behavior in relation and in reaction to the advent of an efficacious Covid vaccine sooner than later.
On December 4, with the stock trading at 412.10, he told MPTrader members:
"My near- and intermediate-term work continues to warn me that ZM has unfinished business on the downside, into the 375-366 optimal target zone, where I will be looking for downside exhaustion and/or upside reversal signals."
Fast-forward to last Friday, December 31, and this is what Mike's pattern and momentum work was informing him about the price trajectory of ZM:
"We see that not only has ZM followed the 'unfinished business to the downside' scenario, it has pressed beneath my next lower optimal target zone of 375-366 to today's low at 341.20, and in so doing, has triggered a much more bearish scenario delineated on my attached chart. Inability of ZM to claw its way back above 375-390 resistance leaves in place downside potential derived off of the Sep-Dec distribution Top Formation, that projects to 250-230, and if violated, possibly to 160-140."
Join Mike at the outset of 2021 to monitor his opportunistic, strategic, and tactical work on ZM and many other stocks, indices, ETFs, cryptocurrency, and precious metals on the MPTrader Coverage List, as well as the always valuable, actionable exchange of ideas discussed in our Trading Room.
Eight weeks ago, Mike Paulenoff discussed the budding technical setup and upside breakout in CRWD (CrowdStrike Holdings) with our MPTraders members, writing:"CRWD has followed the bullish scenario we discussed in late August, and in fact, today (10/06/23) has thrust above 5 months of resistance to new recovery high territory at 176.32. Although my next optimal upside target zone is 190-200, the BIG picture setup points to 230-240 thereafter... Last is 174.86...
On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.