While individuals have been settling in to working from home over the last couple of weeks, we may be looking at another month of working from home after President Trump’s extension of social distancing guidelines through April 30, 2020.
In a recent article published by Barrons, Google searches for “work from home” have recently spiked to their highest level of all time. Searches for “video conferencing” have also hit an all time high.
With video conferencing becoming a communication tool which is replacing in person meetings as a result of social distancing and replacing conference calls as a result of technological innovation, one internet content & information company has notably been thriving; Zoom Video Communication (NYSE: $ZM).
This past Friday when markets closed -3%, Zoom Video Communication increased in price per share by 7.5%. Zoom Video Communication has elevated demand for its services, and as a result, the stock itself may now be setting up to become Wall Street’s trading floors favorite bullish trade to make (i.e. the breakout trade).
A breakout pattern can take place when a stock trades above a previous high or a specified resistance level. As a result, a stock may have uncharted territory to the upside, and therefore be on watch for a bullish trade by resources such as high frequency trading computers, utilized by Wall Street’s most elite financial professional firms, such as JP Morgan Chase.
Having traded on 13.3M in volume and trading just shy of its all time high resistance of $164.94/share, Zoom Media may be poised for a breakout into new all time highs should it trade above $164.94 resistance, ideally paired with increasing buying volume as seen this past Friday.
Should the price action detailed above take place and create a day trading opportunity with fast profit potential, I’ll be looking to make the same trade which I believe Wall Street’s fat cats will be making as well, a fast paced, “take-the-money-and-run” bullish bet on Zoom Video Communications.
Working from home in a world of MacBooks, iPads and iPhones, video conferencing is proving itself to be a popular form of communication. Pairing this simple catalyst with technical analysis, I believe I’ve identified a high probability trading plan in the days or even hours ahead as a result in which financial professionals may be right alongside.
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Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.