3 Ways to Trade Zoom for a Fast 20% Gain
First Impressions 🤔
Zoom’s daily chart paints a story of prolonged consolidation. After its post-pandemic plunge, the stock has been grinding sideways between roughly $60 and $90 for years.
As an investor, you might feel a bit of relief, no more wild swings, but also some itchiness: “Is this the calm before the storm?” 🌪️
At first glance, the sideways drift signals indecision, but the tightening range since May hints that something’s about to give.
Pattern Recognition
Analyst & Fundamental Context
Most analysts sit around a $95–$105 consensus target, slightly above the current price but also the resistance level. Their medium-term thesis rests on steady subscription growth, upsells of Zoom Phone and Zoom Events, and margin improvement as travel rebounds strengthen corporate spending.
On one hand, the chart’s sideways chop aligns with analysts’ view: slow but steady progress. On the other, the short-term channel break suggests a tactical bump toward $89 may come quicker than fundamentals alone justify.
Investment Ideas, with clear entry and exit levels
Here are three ways to play the setup, tailored to your style and patience:
1. Channel Break Entry (Tactical, FOMO-Friendly)
Entry: On a clean breakout above $72–$73 (the small channel’s upper line)
Target: $89 (20% upside)
Stop Loss: $71 (mid-channel) → Risk ~4%
Rationale: Quick move, tight risk; $74–$75 is now a micro-support where institutions could jump in. 📈
2. Patient Pullback (Medium-Term, Low Stress)
Entry: Near $60 support if the stock dips back
Target: $85–$90 (40% upside)
Stop Loss: $55–$57 → Risk 5–8%
Rationale: Buying at a rock-bottom area maximizes reward/risk; ideal if you need some time to have cash available.
3. Confirmation Above Rectangle (Momentum Play)
Entry: On a sustainable close above $90–$91
Target: $120+ (30%+ upside)
Stop Loss: $84–$86 (inside box) → Risk 5–8%
Rationale: Classic breakout with guaranteed momentum, the next logical zone is the top of the preceding local downtrend or analyst targets which is much tighter. Anyway, a break would happen if there si something that shows that ZM has transformed and that would be the reason to see analyst moving the price to $120 instead of the current $95 to $100.
🚫 Bearish scenarios don’t align with Zoom’s growing enterprise revenue and profitability. This accumulation pattern screams “base for the next leg up,” not a continuation lower.
________________________________________
Key Takeaway:
Zoom is coiled in a multi-year base and just broke a short-term falling channel. Whether you’re chasing a quick run to $89, patiently waiting at $60, or needing full confirmation above $90, the reward/risk looks skewed in your favor.
Happy trading! 😊
💬 Does this setup align with your view on
ZM ?
🚀 Hit the rocket if this helped you spot the opportunity and follow for more easy, educational trade ideas!
First Impressions 🤔
Zoom’s daily chart paints a story of prolonged consolidation. After its post-pandemic plunge, the stock has been grinding sideways between roughly $60 and $90 for years.
As an investor, you might feel a bit of relief, no more wild swings, but also some itchiness: “Is this the calm before the storm?” 🌪️
At first glance, the sideways drift signals indecision, but the tightening range since May hints that something’s about to give.
Pattern Recognition
- Short-Term Falling Channel Break
Since May 2025, price carved a small downward sloping channel, from about $82 down to $71.
This mini-channel is textbook: two parallel trendlines touching a series of lower highs and lower lows.
A channel like this often resolves with a quick breakout, and indeed, we see price poking up through the upper trendline. Breaks upward suggest buyers are stepping in, momentum often carries price at least the channel’s height (~$11) above the breakout which is the resistance zone!! This is what I love of Chart Patterns. - Key Support & Resistance
Support at $59–$60, Major floor since mid-2021, a solid zone where institutions historically piled in.
Resistance at $89–$90: The ceiling of the wide trading rectangle, broken this would open a clear path to $124. - Rectangle (Accumulation)
Zoom has been trading inside a large rectangle ($59–$90) for more than two years. This is an accumulation pattern: sellers above $90 have repeatedly stopped rallies, but buyers at $60 stand firm. A break above $90 could trigger a 30–40% rally, while a drop below $60 would signal fresh bearish momentum (not our base case, given fundamentals).
Analyst & Fundamental Context
Most analysts sit around a $95–$105 consensus target, slightly above the current price but also the resistance level. Their medium-term thesis rests on steady subscription growth, upsells of Zoom Phone and Zoom Events, and margin improvement as travel rebounds strengthen corporate spending.
On one hand, the chart’s sideways chop aligns with analysts’ view: slow but steady progress. On the other, the short-term channel break suggests a tactical bump toward $89 may come quicker than fundamentals alone justify.
Investment Ideas, with clear entry and exit levels
Here are three ways to play the setup, tailored to your style and patience:
1. Channel Break Entry (Tactical, FOMO-Friendly)
Entry: On a clean breakout above $72–$73 (the small channel’s upper line)
Target: $89 (20% upside)
Stop Loss: $71 (mid-channel) → Risk ~4%
Rationale: Quick move, tight risk; $74–$75 is now a micro-support where institutions could jump in. 📈
2. Patient Pullback (Medium-Term, Low Stress)
Entry: Near $60 support if the stock dips back
Target: $85–$90 (40% upside)
Stop Loss: $55–$57 → Risk 5–8%
Rationale: Buying at a rock-bottom area maximizes reward/risk; ideal if you need some time to have cash available.
3. Confirmation Above Rectangle (Momentum Play)
Entry: On a sustainable close above $90–$91
Target: $120+ (30%+ upside)
Stop Loss: $84–$86 (inside box) → Risk 5–8%
Rationale: Classic breakout with guaranteed momentum, the next logical zone is the top of the preceding local downtrend or analyst targets which is much tighter. Anyway, a break would happen if there si something that shows that ZM has transformed and that would be the reason to see analyst moving the price to $120 instead of the current $95 to $100.
🚫 Bearish scenarios don’t align with Zoom’s growing enterprise revenue and profitability. This accumulation pattern screams “base for the next leg up,” not a continuation lower.
________________________________________
Key Takeaway:
Zoom is coiled in a multi-year base and just broke a short-term falling channel. Whether you’re chasing a quick run to $89, patiently waiting at $60, or needing full confirmation above $90, the reward/risk looks skewed in your favor.
Happy trading! 😊
💬 Does this setup align with your view on
ZM ?🚀 Hit the rocket if this helped you spot the opportunity and follow for more easy, educational trade ideas!
Trade active
The first entry idea is working amazingly well. Stay tunned!
⚡ Trading is not about luck or patience. Is about skills and knowledge. ⚡
I share my ideas, returns and knowledge here:
📚 👉 topchartpatterns.substack.com/subscribe 👈📚
🤝 Business contact: info@topchartpatterns.com
I share my ideas, returns and knowledge here:
📚 👉 topchartpatterns.substack.com/subscribe 👈📚
🤝 Business contact: info@topchartpatterns.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
⚡ Trading is not about luck or patience. Is about skills and knowledge. ⚡
I share my ideas, returns and knowledge here:
📚 👉 topchartpatterns.substack.com/subscribe 👈📚
🤝 Business contact: info@topchartpatterns.com
I share my ideas, returns and knowledge here:
📚 👉 topchartpatterns.substack.com/subscribe 👈📚
🤝 Business contact: info@topchartpatterns.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.