Zoom Video Communications Inc

Zoom Video Communications Inc (NASDAQ: ZM) is a video communication platform provider. The company's technology connects people via video, phone, chat, and webinars, and allows for cross-device and cross-location interactions.

As per our previous recommendation on ZM as on May 24, 2022, we recommended a ‘Buy’ rating on the stock at USD 90.20 and noted below are the details of support and resistance provided in our previous report and the stock price has moved by 22.89% since then and the price is now moved above the Resistance 2 level.

Recommendation Summary as on May 24, 2022

ZM’s Daily Price Chart

Source: REFINITIV; Analysis: Kalkine Group

Considering the resistance, current trading levels, volatility in the global markets and uncertainties over near macro events and other risk associate, it is prudent to book profits at the current levels. Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 110.85 as of 21 July 2022. 

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 21, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.