Not zooming the right way

But is this possibly a trade setup
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Hey There,

Zoom (ZM) reported earnings earlier this week, and it was not a rosy picture.

That led to a major gap down…

The only question now is: is this a trade setup? Or is it simply a necessary correction to an overpriced stock?

Let's talk about it.

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Zoom was maybe the single biggest winner from the "good side" of the pandemic.

The work-from-home company's stock soared to almost $600 a share at its highest point.

But there's been a consistent downturn for a while now, and the stock price has been stuck between 300-400 since March.

Until yesterday.

Yesterday, the company reported earnings, and they had to admit that the future isn't all that great.

Growth has to slow down because growth was so exponential when everyone was forced to work from home.

That bad news led to a huge gap down on Tuesday:


The question now is, is that a necessary correction or is it a setup for a potential trade off a gap down?

It's important to watch and see if Zoom starts to move back higher soon.

If it does, it could be a trade to get in on.

It's such a unique company and it's hard to predict, but it's an interesting one to watch.

Happy trading,

Markay

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