Zoom (ZM): Zoom Bottoming Out? Major Accumulation Signs!

21 мая

A stock we previously considered "dead" and seemingly on its last legs is Zoom. Despite its current low standing, it warrants another look.

Zoom is currently trading around its lowest level ever, approximately $58 to $59. This is a stark contrast to its all-time high of $588, marking a significant sell-off following the end of the COVID-19 pandemic. Stocks like Zoom are challenging to evaluate due to the massive fluctuations in value.



Historically, Zoom has tested and held the $250 level seven times, but now, for the first time, it’s been in a prolonged sideways movement. This could indicate an accumulation phase, often seen when stocks are at their lowest, suggesting that Zoom might be finding a bottom.

Moreover, there's a trendline within this accumulation phase that has been touched three times, reinforcing the possibility that Zoom is stabilizing. This trendline might act as a support level, potentially leading to a period of growth or at least stability.

Zooming in further, we notice that during this accumulation phase, there are four notable touchpoints on the trendline. While two points dip slightly lower, this is not overly concerning given the overall price action. The trading volume within this phase is visible and consistent, with price movements often oscillating around the Point of Control (POC) at $67. Prices fluctuate above and below this level but tend to return to the POC, indicating strong trading interest at this price point.

Currently, Zoom has the potential to rise towards $72, which corresponds to the High Volume Node Edge. This movement could involve a retest of both the trendline and the POC. A successful retest and subsequent breakout from these levels could provide the necessary momentum to break out of the accumulation phase, potentially opening the door for significant upward movement.

In summary, while Zoom has faced a dramatic decline, the current price movement and trendline support could indicate a phase of accumulation, suggesting that it might not be entirely out of the game yet. While this scenario is intriguing, it is also fraught with risk. Therefore, we are opting to remain on the sidelines for now, monitoring the situation closely.