Swing Trade Idea (ZM) – July 20, 2021
Our bullish trade for Tuesday, July 20th is ZM (Zoom Video Communications Inc). ZM is part of the Technology Sector (XLK). XLK has experienced an 3.4% gain in the last month and its 6M trend turned bullish on June 4th.
ZM has pulled back after a significant rally saw price break above its 100 D MA. ZM has since retraced back to its 100 D MA which provides a good risk/reward long opportunity. With a technical score of 3 (out of 10), ZM is a weak stock that will likely reverse higher.
As a close, if ZM were to trade below $340 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $18.80.
