Another Trade In Zoom Video Communications [05 April 2020]

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Zoom Video Communications (ZM)

With the global Covid-19 pandemic having disrupted nearly everything in sight, including the regular commute to an office environment, many company employees have been forced to make use of digital communication tools, in either the form of e-mail, instant messaging (for e.g. WhatApp) or via video communication such as Skype or Zoom Video. While WhatApps is an indirect holding via Facebook and Skype via Microsoft, Zoom is a pure-play on Video Communications. Back on 09 January, clients of the Unum Capital Trading Desk were alerted to a potential technical buy/long trade idea on ZM at a price of  $72.55 with an entry close to $70. Since then we have seen the price of ZM benefit from the market's realisation that the company's services were in high demand. Over the course of nearly three months, the price tested a high of $164.94, completely exceeding expectations. Most recently we have seen a moderation in price with a retracement and a last close of $128. Whilst I am not one to recommend chasing a stock, I do believe that the most recent pullback has provided an opportunity for traders who missed the original buy to enter a medium term position in anticipation of a continuation of the bull trend. Provisionally, accumulation levels are $103-105-108, using a stop-loss of $93 and a target of $145.

Original ZM Chart:


Updated ZM Chart:



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