A Dynamite Triangle in This Work-From-Home Leader…

Today, we’re going to take another look at Zoom Video Communications, Inc. (ZM).

ZM provides a video-first communications platform for clients all across the world.

When we last took a look at ZM’s chart of the day, it was heading into resistance back in the high 200s.

Since then, the stock has been on an absolute tear, as the work-from-home sector continues to get a boost from the shutdown.

Is ZM finally ready to slow down? Let’s take a look at the daily chart below and see what it says…

Well, ZM has slowed down… at least for a few trading sessions. It’s in a tight coil just below all-time highs, which is bullish. This is sometimes referred to as a “dynamite triangle,” because it could explode to the upside.

This means we can start watching for a buy signal, provided the dynamite triangle plays out as expected and we get continuation to the upside.

Trade Smart,

Michael Saul
Analyst, Chart of the Day

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