Here’s how Scott is trading $ZM – June 24, 2022
ZM MSFT AAPL AMZN
This is Scott with your Chart of the Day. I want to follow up on a chart that we talked about in one of our recent live sessions, that myself, our options guy Rocky, and Dan Fitzpatrick do a plethora of live sessions.
In our last one, I talked about Zoom Video ( NASDAQ: ZM ) and potentially an inverse head and shoulders that I saw on Zoom Video ( NASDAQ: ZM ). We have a left shoulder here, had, and then potentially a right shoulder here. What I am looking for is just a squeeze out of this area.
Now, the way that Dan Fitzpatrick taught me to measure moves out of inverse head and shoulders, essentially you take the move from the bottom, go to the neckline, that’s 46 percent, here’s the neckline, I want to see a 46 percent move up. And that takes us to about the downward sloping 200-day moving average, which is a pretty logical level of resistance.
I have a swing trade on this right now. I don’t suspect that Zoom Video ( NASDAQ: ZM ) is just going to pop up 46 percent in a straight line. But if you are willing to hold through some potential wiggles and jiggles, I think that would be a logical profit-taking target on a trade like Zoom Video ( NASDAQ: ZM ) here.
If it closes below the 8 and maybe even the 21-day exponential period moving average, that would cause me to close this trade out. But this is what I am paying attention to right now in this market.
I like the fact that, unlike a lot of other major leaders, although this one, you could say is a former leader like Microsoft ( NASDAQ: MSFT ); under the 50-day moving average. Apple ( NASDAQ: AAPL ) is under the 50-day moving average. And Amazon ( NASDAQ: AMZN ) is also under the 50-day moving average.
Zoom Video ( NASDAQ: ZM ) is above the 50-day moving average and has a longer base of consolidation. You definitely want to keep an eye on this, maybe add it to your watch list as you are building it over the weekend.
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