Will ZoomInfo (ZI) Break This Bearish Pattern?

ZoomInfo Technologies, Inc. is a holding company, which engages in the provision of a cloud-based platform that offers information on organizations and professionals for sales and marketing teams. It offers sales leadership, sales development, marketing, and demand generation, sales and marketing operations, and recruiting.

Take a look at the 1-year chart of Zoom (NASDAQ: ZI) below with the added notations:

Chart of ZI provided by TradingView

After declining for the past 6 months, ZI appears to be consolidating within a bearish flag pattern (yellow). A bear flag price pattern implies a break lower but there are obviously no guarantees in the market.

The Tale of the Tape: ZI appears to be consolidating within a bear flag. A break below the pattern’s support area should lead to lower prices, thus a short position could be considered.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT


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