Zoom Video Communications Inc. (ZM) is expected to report its third-quarter results after the close of trading here on Monday. In my Sept. 23 review of ZM I wrote, "In our August 4 review of ZM, we recommended that traders take profits on longs towards $125. I hope that traders booked profits last month. Traders should stand aside from ZM probably through the end of the year." Let's check out the charts again of the video communications company to see what they may be indicating for Zoom from here.
In this daily bar chart of ZM, below, we can see that the share price of ZM has declined significantly over the past 12 months. Pieces are in a longer-term decline and trade below the declining 200-day moving average line. The 50-day line has begun to bottom and prices are testing this line from above. The On-Balance-Volume (OBV) line is in a downward trend and tells me that sellers of ZM have been and are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is just slightly above the zero line.