Hitting The Mark On Zoom's Downside Target
by Mike Paulenoff
September 19, 2021 • 12:23 PM EDT
Back on August 18th, nearly two weeks ahead of ZM's (Zoom Video Communications) earnings report, Mike Paulenoff cautioned MPTrader members about the stock.
Mike wrote: "The price structure, which has pressed relentlessly lower (15%) since its 8/05 rally high at 404.35, is probing -- and trading below -- its 100 DMA, now at 345.67, and is considerably beneath its 200 DMA, now down-sloping at 367.20. The 15% decline during the past two weeks suggests that investors likely are anticipating a peak in the Delta variant that clears the way for more people to return to their offices in the Fall, rather than working -- and using Zoom -- from home. Whatever the reason for the weakness, the technical setup in ZM at the moment is extremely tenuous. Inability of ZM to hold above its 100 DMA at 345.67 will increase downward pressure that points to 320-317 support, which MUST contain the weakness to avert downside acceleration that projects to a retest of the May low-zone at 276 to 273."
Indeed, ZM reacted negatively to earnings, sending investors to the exits on August 31st, pressing the stock down 16%, into the 288 area from 347.50,
That same day, Mike reiterated his optimal downside target, with 273 at the lower end, and sure enough last Thursday (9/16), ZM hit a new corrective low at 273.60.
More importantly perhaps, on Friday (9/17), in a down market, ZM climbed 3% off of its 11-month low at 273.60 to close right near the high of the day at 287.68 amid meaningful positive momentum divergences.
Although ZM has considerable "wood to chop" to improve its technical outlook, last Friday's upside reversal off of Mike's multi-month corrective target is a preliminary signal that ZM's weakness is exhausted ahead of price repair and recovery.
Join Mike and our members for intraday analysis and discussion about ZM's technical set up, as well as the set ups of many other stocks, ETFs, macro indices, cryptocurrencies, and commodities.
Last Tuesday afternoon, hours before CAVA (Cava Group) was scheduled to report Earnings, this is what I posted for MPTrader members:CAVA reports Earnings after today's close. Approaching the news, CAVA is circling 61, a full 40% beneath its April 2026 high at 98.79, amid an unconfirmed new corrective low at 60.21 yesterday (8/10/26), leaving CAVA positioned for a "buy-the-news" setup (the opposite of a sell-the-news setup in a name that is up 30% to 40% approaching Earnings).
Good Sunday Afternoon, MPTraders! Last Thursday afternoon, ahead of AAPL's Earnings, this is what we discussed about the stock's probable price path in reaction to the news:Unless AAPL produces something extraordinary, or otherwise announces some unknown bullish catalyst, my pattern work has a very difficult time expecting anything other than a "best-case" sell-the-news scenario in reaction to Earnings. I can make a compelling argument that the upleg from the 6/26/26 low at 273.33 to the 7/29/26 ATH at 344.
XOM (Exxon Mobil)-- Back on May 19, 2026, a fellow MPTrader member requested an update on XOM. This is what we discussed at that time:My attached Daily Chart setup shows my preferred scenario calling for a near-term peak of the current upmove from the 4/17 low at 141.97 to a target zone from 162 to 165, followed by a rollover and press lower that revisits and possibly breaks the 41/7 low, which also will complete the larger corrective process from the 3/30/26 ATH at 176.41.
Pharma Update: MRK and LLYOn Wednesday (6/24/26), this is what we discussed about MRK:MRK as well, which we see on my attached Daily Chart exhbits a VERY BULLISH technical setup-- quite the opposite of beleaguered PFE. My pattern work argues that all of the price action from the 2/25/26 high at 125.14 represents a high-level bullish digestion period and pattern atop the major upleg from the May 2025 low at 73.31.
On January 2, 2026, this is what I posted about CAVA (Cava Group Casual Mediterranean Cuisine) to MPTrader members:After CAVA's meteoric climb from 29.00 in October 2023 to an ATH at 172.65 in November 2024, the stock rolled over into a relentless decline that hit its low at 43.
