Zoom Video Communications stock (NASDAQ:ZM) is essentially a bearish market. This market has been a disappointment to investors, and they may lose more money because of the weakness in the market, which will hold out long enough this year.
Since December 2020, until date (May 2021), the general movement in the
market has been bearish. Rallies have been short-lived and they have invariably
proffered sellers with opportunities to sell further whenever price is dearer.
ADX period 14 is below the level 20, which means that the momentum in the
market is not currently strong. However, the DM- is above the DM+ (though
slightly). That shows that bears are still a threat in spite of the current
bullish effort.
The MACD default parameters, has its histogram above the zero line and
its signals lines below the zero line. The histogram will eventually drop below
the zero line; and the formation of both ADX 14 and MACD will form a Bearish
Confirmation Pattern again.
The outlook on ZM is dismal for this year, and price is projected to
reach the demand zones at 300.00, 250.00 and 200.00.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Teach Yourself Technical Analysis: Technical analysis teaching
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