What's Jim Cramer's view of Zoom Video (ZM) ?
"Let's keep it going with Zoom," said Jim Cramer to a caller during Wednesday's "Mad Money."
We last looked at ZM on Sept. 9, and wrote that "ZM looks like it will resume its impressive rally. Aggressive traders could buy available weakness risking a close below $300." Let's see how this recommendation is shaping up.
In this daily Japanese candlestick chart of ZM, below, we can see prices bounced modestly from Sept. 9, so traders may have been buying at $390 or higher. Prices drifted upwards and trading volume slowed, which is not unusual. We need to watch volume closely from here to see if it confirms strength or weakness. The On-Balance-Volume (OBV) line has been steady recently, suggesting a balance between aggressive buyers and aggressive sellers. A turn higher for the OBV line would be a plus. The Moving Average Convergence Divergence (MACD) oscillator is still bullish, but it has narrowed significantly.
In this weekly Japanese candlestick chart of ZM, below, we can see that the recent candles have all been white - bullish. The 40-week moving average line is bullish and so is the OBV line along with a bullish MACD oscillator.
In this daily Point and Figure chart of ZM, below, we can see that prices reached an upside price target of $420. This does not mean that prices are finished on the upside, but it could mean a period of consolidation before renewed strength.
Bottom line strategy: Traders who went long ZM since Sept. 9 should continue to hold those positions with our $300 risk point for now.
