Stock of the day: Zoom Communications

In today’s stock of the day, we’re taking a close look at Zoom Communications, which continues to follow a clean, textbook-style downtrend. The chart tells a consistent story — one of lower highs, lower lows, and technical corrections feeding into more selling.

This decline didn’t come out of nowhere. In May, Zoom formed a flag pattern (marked with blue lines), which broke to the downside. Then in June, we saw a wedge formation, a typical corrective move, which also resolved with a bearish breakout. And now, we’re inside another flag, the third consolidation structure in a series — and that consistency suggests the downtrend is still intact.

One detail worth noting: the upper boundary of the current flag overlaps with the lower boundary of the previous wedge, creating a technical resistance zone. This overlapping structure reinforces the ceiling and adds weight to the bearish case.

If the pattern continues to play out, we should expect a breakout to the downside of the current flag, which would serve as a fresh sell signal and continuation of the broader bearish trend. For now, the path of least resistance remains down.

A change in outlook would require a break above the flag’s upper boundary and especially above the green horizontal resistance. That would invalidate the bearish setup — but at this stage, the likelihood of that scenario playing out remains low. Zoom’s downtrend still looks well-organized and in motion.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-zoom-communications