Did you go with us on ZoomInfo ($ZI)? (February 05, 2021)
ZI
I want to look at ZoomInfo ( NASDAQ: ZI ). This is one of the stocks that is on our Active Trade List. We got it down here around 49ish, something like that, and so we are up just about 20 percent, it’s working really well.
But I want to explain something, first of all, see these little lines here? This is stuff that I drew a few days ago when I was first looking at the trade. We had already got it and then I was trying to explain to our members how you can kind of stay with a stock when you might normally get shaken out.
My description was that you want to say, okay, I like this stock because I think it’s going to do “X”. And so then go ahead and draw it on the chart; what do you think it’s going to do? It’s not predicting, it’s instead, envisioning. If this stock acts healthy, in a healthy manner, what’s it going to do? And then of course, if it does the opposite then you go, alright maybe I better ditch this thing.
And so I was drawing these lines and my idea was, I could see the stock running up and then having some kind of little pullback. But it just really had to kind of hold above this, actually, above this 50ish level. But at the very least it had to hold here and then start running up again. It is performing better than expected.
I am still looking for this kind of move down at some point and after that I don’t know, I’m not a chess guy, I can’t think more than one step ahead, that’s it. So I am looking for some kind of a pullback. And then depending on when and how deep that pullback occurs, that’s when we kind of plan the next move.
But when you are up almost 20 percent in just a matter of days now you are kind of on defense. You are wanting to protect your gains, maybe start selling a little bit or at least use some staggered stops so if the stock does falter a bit, you are out of some of your position close to the top. But what we are really seeing here is, for 3-days in a row we’ve got higher intraday lows, higher intraday highs, and good closing location values up at the top end of the intraday range.
I think this stock is just going to keep going overall. But at some point next week this thing has to rest. Here’s the IPO chart, it just started last June. I am not even going to pick a price target, let’s just say higher.
Free Chart