Zoom’s share price is starting to consolidate around the $170.00 level after buyers recently failed to move the price above the stock’s all-time price high, around the $180.00 level.
Zoom stock analysis shows that a bearish technical correction towards the $145.00 level could take place if the price fails to make a new all-time high.
Zoom medium-term price trend
Zoom’s share price is starting to consolidate, following numerous failed attempts to rally the stock to a new all-time high.
With global lockdown restrictions gradually being eased over the next few weeks and months, investors may be feeling uneasy about taking additional long positions in the stock.
Zoom technical analysis shows that failure to overcome the $180.00 level could cause a technical correction back towards the stock’s 50-day moving average around the $145.00 level.
The parabolic SAR indicator on the daily time frame also shows that critical technical support is located around the $145.00 level.
Traders should note that a large head-and-shoulders pattern will also form if the price drops towards the $110.00 technical area.
Zoom short-term price trend
Zoom technical analysis shows that the stock has a strong short-term bullish bias while the price trades above the $118.00 support level.
The four-hour time frame shows that the stock is still working within a rising price channel, between the $130.00 to $190.00 level.
A breakout above $180.00 could see the top of the channel tested, around the $190.00 level.
According to the parabolic SAR indicator on the daily time frame, Zoom’s share price could drop towards the $155.00 level if the $170.00 support level is broken.
Zoom technical summary
Zoom stock analysis highlights that recent upside exhaustion may cause a bearish correction. A move below the $170.00 level could cause a drop towards the $155.00 or $145.00 levels.