ZM - Impending Breakout

10 de out. de 2020

ZM has been ranging for 12 days now. On Balance Volume, Volume-Weighted RSI, and price action holding above the point of control as we tiptoe to the edge of this wedge/pennant. Looking to open a position on breakout with big volume. Short term price target: $510. Would prefer to see price action teeter above this pattern and maintain accumulation for another couple weeks. That is an equally plausible scenario.

11 de out. de 2020

Nota

Going into 10/12 - 10/13, looking for daily to close above $496. Will open a long position with very tight stop at market open next day. First point of resistance is $506; if candle breaks thru without much kickback, next target is $516. We'll reevaluate at that time. If volume is weak and price deflects off of $506, expect stock to consolidate between $497 and $506 for a period. The longer the price consolidates at these so-called 'whacky valuations', the greater support for the impending fall, which makes long positions that much easier to swallow beyond day trades.

12 de out. de 2020

Nota

Breakout volume was below average today. Expecting latter scenario outlined above (further consolidation between 497-506). May open a position if volume shows up tomorrow (it is turnaround Tuesday). 5-15 minute time frames are bearish; 4hr and daily charts are moderately bullish. For a market that's bracing for a potential 5-10% pullback in the near term, going long isn't worth it unless the risk/reward ratios add up. Not interested in trading the consolidation pattern.