Zoom Dashes to Higher Highs

Market Update: After yesterday’s historic rally, the futures this morning point to a slightly positive but relatively flat opening.

This is after Congress and the Administration announced that they had reached a deal for a coronavirus relief package. We believe the markets are still showing that there is a great deal of uncertainty with the impact of the virus on the economy.

Even after yesterday’s increase in the market, we are still firmly in a bear market as the major indexes are still far below their previous highs.

Now, even though we are still in a bear market, the market could turn quickly just as it did yesterday.

To protect ourselves from these whipsaws we like to have a few hedges in our Powertrend portfolio . So today’s chart will be for a stock that has remained bullish despite the selloff.

Today’s Chart of the Day stock has been one that has acted as a hideout for the bulls amidst this bear market.

Yesterday, we looked at a Daily Price Chart of Chevron Corp. and noted that the stock had been making a series of 52-Week Lows.

Today’s Chart is for Zoom Video Communications, Inc. (NYSE: ZM).

Zoom Video Communications, Inc. provides a video-first communications platform that changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting.

The Daily Price Chart below shows that ZM has traded in a clear bullish pattern of higher highs and higher lows since late January.

Track the Price Chart from lower left to the upper right…

Zoom makes

This bullish trading pattern points to a further advance.

You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.

But it’s important to note that strong stock rallies have pullbacks along the way.

These pullbacks present a buying opportunity for us – the kind we hunt for in PowerTrend Options.

Purchasing ZM after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.

We’ll keep watching ZM as it tops its previous highs and waiting for price pullbacks.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.