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.
Last Monday afternoon (October 21), Mike alerted MPTrader members to a Goldman Sachs upgrade of optical products retailer Warby Parker (WRBY) to Buy from Neutral. Goldman attached an 18.00 target price to the stock. At the time of Mike's post to members, WRBY was trading at 17.55 in reaction to the GS upgrade, up 6% from the prior close, and just 2.5% from Goldman's 12-month target price.
On the afternoon of March 13, 2024, I posted the following heads-up to MPTrader members about important price action in WPM (Wheaton Precious Metals), my go-to ("favorite") name for Silver Mining within the larger Precious Metals Mining Complex:From a silver-gold perspective, let's notice that WPM strength is pushing up against its near-term resistance line in the vicinity of 45.80.
Over one month ago, on Monday morning, 9/09/24, I posted the following NVDA update for our members:My near-term pattern work makes a compelling argument that the corrective downleg from the 8/16 high at 131 is nearing downside exhaustion and completion in and around 100 (Friday's low was 100.95). That said, unless and until NVDA climbs above 106.30 to 108.
On August 27, 2024, I reviewed my near and intermediate-term technical setup on copper (gold, silver, oil) producer FCX (Freeport-McMoRan) for MPTrader members, writing:My attached Daily Chart shows the 30% correction from the May 2024 high to the August 2024 low, which my pattern work argues ended the retracement of the first upleg of a new bull phase in FCX that began at the 10/23/23 low of 33.08 and ended at the 5/20/24 high of 55.24. The August 2024 upmove from 39.08 (8/05/24) to 46.
On August 5, hours before its after-market earnings report, Mike Paulenoff posted a bullish alert on AI-juggernaut PLTR, writing:"Bottom Line Technically: As long as any forthcoming weakness on a closing basis remains above key support lodged between 19.60 and 21.50, PLTR has the right look of nearing the completion of the correction from its 7/08/24 high at 29.83, and the initiation of another advance that will extend the upside potential off of a two-year base-accumulation setup."The stock, trading at 23.