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.
Every person on the planet is now aware that early on Saturday night, June 21st, 2025, the U.S. military attacked and severely damaged (destroyed?) Iran's nuclear sites and presumably their ability to produce nuclear materials needed to create a WMD.
Last Wednesday afternoon (6/11/25), with META circling 700 after establishing a 4-month new post-April 2025 recovery rally high at 708.87, this is what we discussed about the current technical setup: Just a heads up that my pattern work is warning me that the 52% upmove from the 4/07 low at 467.31 to today's (6/11) high at 708.87 has the right look of a completed, overextended, overbought, unconfirmed rally peak that leaves the price structure vulnerable to a correction of some magnitude.
On May 6, 2025, during the final hour of trading, and before AMD was scheduled to report quarterly Earnings that evening, I posted the following analysis to our MPTrader Discussion Room:AMD reports Earnings after the close... The only conviction I can derive from my pattern work is that the 4/08/25 low at 76.48, which represented a 66% correction from the March 2024 high at 227.30, has the right look of a significant low that completed a major bear phase.
On April 22, 2025, I posted the following analysis about my technical setup work in XBI (SPDR SP Biotech ETF):XBI (SPDR SP Biotech ETF)-- Could it be? Could it be that the near-40% correction from the 11/11/24 multi-year high at 105.47 to the 4/09/25 low at 66.66 fully discounted all the bad news in this sector? From a BIG Picture perspective, my attached Daily Chart shows this month's spike low into the vicinity of the previous major corrective low-zone starting in May 2022.
In the early afternoon on April 11, this was my note to our members:"IBIT (iShares Bitcoin Trust ETF)-- From a trading perspective, anyone who is in sync with the Bitcoin setup might consider owning IBIT (iShares Bitcoin ETF) against a stop below its 4/07/25 low at 42.98 (see my attached Daily Chart below)...
