Zoom Video (ZM) Can’t Hold A Bid, Here’s The Trade

In 2020 leading video communications platform, Zoom Video Communications Inc (ZM) was the hottest stock in the market. On October 19, 2020 the popular video conferencing stock traded as high as $588.84 a share. Since that major top in the stock, the shares have tumbled and currently trade around $202.50 a share. The stock is now trading below every important moving average and continues to look weak on the charts. A further decline in the stock price should continue. 

The next major support level for Zoom Video (ZM) stock will be around the $170.00 area. This key support area is where the stock broke out of a weekly chart base back in late May 2020. Often, when stocks that were high flyers fall from grace they will be defended around their key breakout levels. I will be looking for a longside trade around this key support area when the stock tests this level.     

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