The online meeting space is getting pretty competitive. For a while it looked like “Zoom” would be a brand that became ubiquitous with online meetings (like Kleenex is with tissues and Xerox was with copies). But recently Google and Microsoft Teams are creating pressure in that space and it forced Zoom to project more cautious earnings for the coming quarter. This is setting up a great potential trade.

Here is what we are watching and what you need to know to trade it.

There is one particular pattern that I absolutely LOVE to see on charts. It is a sign that a great trade is about to set up. Take a look at how I spot it and how you can start adding it to your charts as well. Here is what you need.

ZM is showing a bearish setup following its post-earnings decline. Shares fell below the 8-, 21-, and 55-day moving averages as momentum weakened sharply. PPO has crossed below its signal line with an expanding negative histogram, while –DI has moved above +DI and ADX remains elevated, confirming growing selling pressure.

A sustained break below support near $92.20 could open the door toward $89.80 and potentially $87.90. Watch for bearish opportunities below $92.20, while a recovery above approximately $97.50 would weaken the setup.

Wishing you the best,

Wendy