• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Has Zoom Video Discounted All the Bullish News for Now?

It's not that traders are aggressive sellers ahead of earnings but rather where are the aggressive buyers?
By BRUCE KAMICH
Oct 12, 2020 | 01:41 PM EDT
Stocks quotes in this article: ZM

During Friday's Mad Money program, Jim Cramer told viewers what companies that were reporting earnings had his attention. On Wednesday earnings from a number of banks are due out but Cramer said the highlight will be Zoom Video Communications (ZM) , which has prospered during the pandemic. 

 
We looked at the charts of  ZM on October 8 and wrote that "Traders and investors should consider raising stop protection from a close below $300 to a close below $460 now." Prices have held steady and above our new stop level but let's check the price charts again. 
 
In this updated daily Japanese candlestick chart of ZM, below, we can see that prices have been closing below the opening in recent days - that's what a red candle bar indicates.
 
Trading volume has declined and the On-Balance-Volume (OBV) line has been flat recently. Buyers and sellers are balanced which suggests that traders are not convinced one way or the other about the upcoming earnings report.
 
The Moving Average Convergence Divergence (MACD) oscillator has been in a take profits sell mode since late September. 
 
 
 
In this daily Point and Figure chart of ZM, below, we can see that a trade at $469.25 could weaken this chart.  
 
 
Bottom line strategy: As we have noted before, ZM is a symbol of our new economy. ZM has made a huge advance this year and while there are still some people who have yet to embrace Zoom, the stock has, I believe, discounted much of the news. It is not that traders are aggressive sellers ahead of earnings but rather where are the aggressive buyers? I would raise stop protection to $469 from below $460.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Software & Services | Business Communications | Mad Money | Telecom Services

More from Investing

Whoa Baby! Here's How I'm Trading Johnson & Johnson After Earnings

Stephen Guilfoyle
Jan 26, 2021 11:12 AM EST

The revenue and earnings beats are nice but that's not what really got me fired up.

The Key to This Market Is Knowing What Themes Are Working

James "Rev Shark" DePorre
Jan 26, 2021 11:00 AM EST

Overall the action is relatively mild, which is quite healthy after the chaotic 'flash crash' that occurred yesterday.

$55 Is the Make or Break Price for Crude Oil

Carley Garner
Jan 26, 2021 11:00 AM EST

It's difficult to imagine oil moving higher from here without significant help from further weakening in the greenback.

The Housing Market Is Hot and Home Depot Is Poised to Make New Highs

Bruce Kamich
Jan 26, 2021 10:05 AM EST

We're in the middle of one of the best housing markets ever as people upgrade to homes away from cities.

Could Johnson & Johnson Go Higher and Higher?

Ed Ponsi
Jan 26, 2021 10:00 AM EST

Will the vaccine will be a game changer? The charts are giving indications that J&J is ready to run.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • 08:05 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/26/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login