Last week, leading cloud software company, Zendesk Inc (ZEN), plunged lower after reporting earnings. The software company reported weaker than expected earnings and dropped over 20 points from the July 29th, 2021 high. Traders should note that Zendesk Inc (ZEN) stock is now trading below its 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and often signals further downside. Today, Zendesk Inc (ZEN) is trading lower by $2.11 to $128.42 a share.
The next major support level for Zendesk Inc (ZEN) stock will be around the $118.00 area. This important level is where the stock gapped higher in early November 2020 before making new all time highs. Often, prior breakout levels will be excellent support when retested. This is a trade level where I would look to go long Zendesk Inc (ZEN) stock.
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