Bears Should Pray Zoom Video's Stock Gets Rejected At Resistance

Zoom Video Communications Inc. ZM shares traded higher Wednesday as the stock regains investor interest amid COVID-19 Delta variant concerns. The stock looks to be breaking a key technical level and potentially could see a breakout.

Zoom Video closed was up 6.8% at $400.58.

Zoom Video Communications Daily Chart Analysis

• The stock looks to be breaking out of what technical traders call an ascending triangle pattern.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock has recently seen bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The $400 price level once held as support for a time in the past before crossing below and turning into resistance. Now the stock is looking to break above the old resistance and turn it back into support.
• The Relative Strength Index (RSI) has been moving up the past couple weeks and sits at 64. This shows there are more buyers in the stock than sellers and buyers have been moving into the stock.

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What’s Next For Zoom Video Communications?

Bullish traders are looking to see the stock breakout above resistance and retest it as support. If the stock can hold this level as support, it may continue to rise.

Bearish traders would like to see the stock get rejected at resistance and fall back down further. Bears would then like to see the stock cross below the higher low trendline and the moving averages for a potential change in trend and sentiment.