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.
This past Tuesday, September 26, two days prior to NKE (Nike) earnings, Mike Paulenoff posted one of his pre-earnings "Heads Up" to our members, writing:"Certainly, NKE is oversold enough within a relentless downtrend pattern off of its Feb. 2023 recovery high at 131.31, that a positive reaction to quarterly results reflecting anything other than a disaster coupled with dismal guidance, is likely to trigger an initial positive reaction into the 95 to 100 recovery resistance zone.
On Wednesday, September 7, during one of Mike Paulenoff's frequent intraday updates of the E-Mini SP 500 futures contract (symbol ES) to keep MPTrader members informed about dominant near and intermediate-term trend direction in the index and the SPY ETF, Mike posted an important warning:"ES from a BIG Picture perspective shows the weakness off of last Friday's (9/01) rally high at 4547.75 into this AM's low at 4434.75 (-2.5% of the 4.
Back on June 26th, when nearby WTI Oil futures were circling $67/bbl, Mike Paulenoff issued a heads-up to MPTrader members about a potentially opportunistic technical setup developing in OXY (Occidental Petroleum), writing:"OXY pressed to a low at 55.58 this AM, which marginally violated the 5/11 low at 56.16, BUT held above the more technically significant March 2023 low at 55.51 prior to pivoting to the upside into positive territory, now trading at 57.47.
On Monday August 28, we posted a heads-up about FCX (Freeport-McMoRan) to our MPTrader members, writing: FCX (Copper, Gold, Oil) producer has the right technical look (and a positive momentum divergence at Friday's low) of a completed pullback (44.70 to 37.74) within its larger bullish multi-month Coil formation. Last Friday's (8/25/23) low at 37.74 represented a very healthy 15.6% correction off of the 7/31/23 rally peak at 44.70 and also amounted to an exact Fibonacci 62% retracement of the 5/24/23 to 7/31/23 advance from 33.06 to 44.70.
Top Call: NVDADuring the afternoon trading session of August 23, 2023, prior to the release of NVDA's (Nvidia Corp.) highly anticipated quarterly earnings report, we alerted our MPTrader members to our near-term forecast for NVDA, derived from my technical setup work heading into earnings.