Continuing today’s set of growth stocks, here’s a look at $ZM. I will bring these ideas together in an article hopefully by tomorrow night.
But, my last call on this was here. That failed as I expected the early May lows to support the stock but it only continued to deteriorate. Now, I’ve long since thought that these growth stocks were in some kind of “two,” and the 50-61.8% retracement area seemed like a good place for them to reverse, but they did not.
That said, I smell total capitulation here, a sign that a major trend reversal may be upon us. Now, the next best fib for a two is the 78.6% retracement, and we’re there. It counts well as merely a correction because of that big triangle at the top. A long-term trend reversal will want to see an impulse wave up there and that’s not one. Everything from minor (green) B counts well an an impulse and that’s what we want to see for minor (green) c. Nice big gap in the 3rd of the 3rd at the end of August. That was the meat of the move, everything since then is the end of it.
If that is in fact a 2, you can see where the three should go. I know, I know…
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