Earnings Play: Zoom Video Communications
Jason Lubin November 27, 2020 2:45 AM
Upside breakout from a descending broadening wedge pattern.
On Monday, after market, Zoom Video Communications (ZM) is expected to report third quarter EPS of $0.75 compared to $0.09 last year on revenue of approximately $693.4 million vs. $166.6 million in the previous year. The Co is the leader in modern enterprise video communications and its expected move based on front-month options is 14.9%. The last time the company reported earnings the stock surged 40.8%.
Technically speaking, on a daily chart, Zoom Video's stock price broke out to the upside of a descending broadening wedge pattern on Wednesday, November 25th. The RSI has also broken out to the upside of a bearish trendline. The simple moving averages (SMA) are arranged in a mixed to bullish manner, as the 50-day SMA is above the 20-day SMA and the 20-day SMA is above the 200-day SMA. Price will likely advance towards the first resistance level of 505.00. If price can get above 505.00, then its next target would be the record high of roughly 589.00. If price surpasses 589.00, then its first Fibonacci target is 732.00. On the other hand, if price falls below the upper trendline of the descending broadening wedge pattern, it would be a bearish signal. If that occurs then traders should look to 366.00 for a potential bounce. If price fails to rebound off of 366.00, then price could tumble back to 281.00.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.