{"id":6526,"date":"2020-04-24T08:58:50","date_gmt":"2020-04-24T12:58:50","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6526"},"modified":"2020-04-24T09:23:58","modified_gmt":"2020-04-24T13:23:58","slug":"zm-zoom-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/zm-zoom-breakout\/","title":{"rendered":"Trade Review: +8.8% Gain on Zoom Video’s Breakout Day [$ZM]"},"content":{"rendered":"\n
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Zoom Video ($ZM) rocketed to a new record high yesterday, enabling subscribers to score a gain of +8.8% so far. Here’s a simple chart review of the trade setup that led to this timely entry.<\/h1>\n\n\n\n

With a huge percentage of the global population working from home during the coronavirus pandemic, companies that easily facilitate remote working have seen massive revenue jumps lately.<\/p>\n\n\n\n

Zoom Video ($ZM), quickly becoming a household name for hosting online video meetings, is one such public company that has been benefiting hugely. <\/p>\n\n\n\n

Shares of $ZM zoomed 12.5% higher to a new all-time yesterday (April 23), paving the way for further upside in the near-term.<\/p>\n\n\n\n

Since we listed Zoom as a new breakout buy setup in the previous night’s Wagner Daily<\/em> report, our subscribers were prepared to take advantage of the profitable opportunity. <\/p>\n\n\n\n

After buying on yesterday’s open, the model portfolio of our nightly swing trading newsletter<\/a> is now showing an unrealized gain of approx. +8.8% on the first day of entry into $ZM.<\/strong><\/p>\n\n\n\n

Continue reading<\/em> to see exactly what we liked so much about the Zoom chart pattern that led to this timely breakout entry into $ZM.<\/p>\n\n\n\n

$ZM – Cup with Handle Breakout Setup<\/h2>\n\n\n\n

The $ZM chart caught our attention while forming a bullish cup with handle<\/a> type pattern over the past five weeks. <\/p>\n\n\n\n

We discussed the Zoom trade setup in Wednesday night’s newsletter as a potential breakout buy entry above $155.<\/p>\n\n\n\n

Specifically, we really liked the declining volume as the price chopped around in a fairly tight range from from April 16 to 22. <\/p>\n\n\n\n

Declining volume during a consolidation near the highs is a bullish signal–it tells us the bears are not stepping in to sell while the bulls take a rest. <\/p>\n\n\n\n

Below is the exact commentary and chart we listed for subscribers in Wednesday night’s Wagner Daily<\/strong><\/a><\/em> report:<\/p>\n\n\n\n

“We’d love if $ZM were to have pulled back a bit more and put in some sort of reversal candle off the 20-day EMA, but Tuesday’s selloff may be all we see from this leading stock. Wednesday’s tight trading range on light volume is a bullish sign if the price can move higher. Note the dry up in volume the past few days as well. If $ZM can get going, it could turn into an explosive mover.”<\/p><\/blockquote>\n\n\n\n

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Going into the April 23 trading session, we listed $ZM for breakout buy entry with a trigger price of $155.10 (above the three-day high).<\/p>\n\n\n\n

$ZM triggered our buy entry just two minutes after the market open, then never looked back!<\/p>\n\n\n\n

With a powerful volume surge backed by institutional accumulation, Zoom exploded to a 12% gain and closed at a new all-time high yesterday. Check it out:<\/p>\n\n\n\n

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The relative strength of Zoom’s breakout was impressive, especially considering the broad market showed weakness throughout most of yesterday.<\/p>\n\n\n\n

Given the monstrous move out of the starting gate, $ZM has the potential to become a huge winner and the next market leader if<\/em> overall market conditions do not deteriorate. <\/p>\n\n\n\n

From here, we plan to trail a stop higher to maximize profits and minimize risk as the stock cruises higher. <\/p>\n\n\n\n

As always, Wagner Daily<\/a><\/strong><\/em> subscribers will be alerted to any changes in the stop or target price, depending on the future price action of $ZM. <\/p>\n\n\n\n

By the way, in case you missed it, the cast of Saturday Night Live<\/em> even had a lot of fun with Zoom. Check it out:<\/p>\n\n\n