Will ZM Stock Price Break $76 After Earnings?

Zoom Stock price (NASDAQ: ZM) fell 9.20% (approx.) in the current month. It seems like ZM stock price witnessed profit booking ahead of quarterly earnings and is returning back to the lower range.

Zoom stock price has stuck into the wide range between $64.00 to $74.00. Buyers tried multiple times to break the higher range but got rejected. It shows the dominance of sellers in the supply zone.

ZM stock price is trading below the 200-day EMA showcasing downtrend. However, the 50-day EMA slopes sideways indicating prices lacked direction and might continue to consolidate in a range.

At the end of May, Zoom Video Communications released the previous quarterly earnings. The company reported positive earnings and succeeded to meet the EPS as well as revenue estimates.

Despite that, Zoom stock reacted negatively and fell 13% in two sessions. Therefore, investors need to be very careful in the current quarter earnings which is scheduled on Aug 22, 2023.

Zoom Stock price closed the previous session at $66.60 with an intraday decline of -1.29%. The market capitalization stands at $19.82 Billion.

Will Zoom Stock Price Break the Higher Range?

Zoom Stock Price (NASDAQ: ZM) is trading near the demand zone and earnings date is coming closer. This might increase the volatility in the stock in the coming weeks. The market analyst estimated an EPS of 1.059 and revenue of $1.114 Billion.

If Zoom Video Communication succeeded to beat the estimates then the stock might try to break either side of the range. As per the past records, the company had a good track record of beating estimates. So, again this time investors are expecting good earnings.

ZM Stock Showing Signs of Base Formation?

ZM stock price faced rejection from $74.00 and formed a bearish candle on the weekly time frame. However, the stock price is near the crucial support and the downside seems to be limited.

Till the Zoom stock price sustains above $60.00 the possibility of bounce back remains high. Moreover, if the prices continue to consolidate for some more time then it may be considered as base formation.

The MACD displayed a negative crossover and the histogram bar is red indicating bearishness. The RSI at 40 slopes down also denotes weakness and sellers are strengthening their grip.

Conclusion

Zoom Stock price (NASDAQ: ZM) witnessed profit booking ahead of quarterly earnings. However, the price is near the demand zone and the downside seems to be limited.

The technical analysis suggests ZM stock price is mildly bearish and the possibility of $76.00 breakout remains low.

Technical levels

Resistance levels: $74.00 and $85.00
Support levels: $64.00 and $60.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.