Zoom Setting Up Well For Another Long-Term Uptrend
If I could think of just one image to sum up life in 2020, it would be people scattered across a computer screen during a Zoom session, gathering remotely while the COVID-19 pandemic ravaged the globe. Zoom has become synonymous with virtual meetings and working from home. Even after 2021, Zoom is here to stay as the shutdown has shown the efficiency and effectiveness of the product. Not surprisingly, the stock was an absolute monster in 2020 and one that afforded traders monster gains who played it correctly.
Zoom has pulled back over the past three months, dropping from around $588 to approximately $331. Over the past few weeks, I have been keeping an eye on Zoom to see if it can bounce off the 200-day moving average, which in my view is the "line in the sand" for the long-term bull trend. Zoom has moved up nicely off this key support level and has been consolidating constructively over the past few weeks. I currently own Zoom and will look to add to my position if it can clear resistance around the $400 level. I am still very cautious in this market and am in no hurry to recklessly add positions. However, I'm always on guard to see if a true innovator is offering a low risk, high potential set up.
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Full Disclosure: Zoom is a stock I currently own.
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