Shares of Zoom Video Communications (ZM) are collapsing today. The stock is down 5% on the day after a massive move higher. This has been a favorite of investors who were looking for a safe haven during Covid-19. To put the move in perspective, Zoom Video Communications was trading at $70 per share in January 2020. This past Friday it hit an all-time high of $261.62.
Zoom stock chart analysis shows the stock clearly overbought on all technical indicators. The odds of a correction in the coming month that is greater than 10% stand at 90%, the odds of a correction in the coming month of more than 20% stand at 65%. The stock chart calculation shows the longer-term (3-month price outlook) correction target to be $180. That would represent a drop in the stock of 31.30% and likely represent a good buying opportunity for a swing trade bounce.
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