Zoom Stock Pulls Back to Historic Trendline

There's plenty of optimism surrounding ZM at the moment

Deputy Editor
Jul 27, 2020 at 3:27 PM
facebook X logo linkedin


The shares of stay-at-home staple Zoom Video Communications (NASDAQ:ZM) are rising alongside the number of coronavirus cases in the U.S. and abroad, though the most recent bout of market volatility has the stock down 10.4% from its July 13 all-time high of $281. Additionally, the stock has found some resistance from its 10-day moving average. While steam seems to have been lost, a fresh surge may be on the horizon. This afternoon the stock is up 2.1% at $251.63, at last check, and looks to have pulled back to a long-term area of support.

The trendline in question is ZM's 40-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, two similar signals have occurred during the past three years. Zoom stock enjoyed positive returns one month after each signal, and averaged a 43.1% gain. A similar move, from the security's current perch, would put ZM surged past all-time high territory on the charts. 

ZM Chart 2 July 27

Short interest is falling, down 12.6% in the last reporting period. The 11.52 million shares sold short represent an eyebrow-raising 35.8% of the stock's available float. In simpler terms, it would take just take one day to buy back these bearish bets.   

Lastly, analysts are divided on ZM. Of the 21 in coverage, 11 rate it a "buy" or better, compared to the 10 remaining that call it a "hold" or worse. Meanwhile, the 12-month consensus target price of $226.96 is a 10% discount to current levels, meaning there is plenty of room for upgrades and price-target hikes in the near future.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI