Zoom Video Communications (ZM) shares jumped higher in the two months following the company’s IPO in April 2019. The stock price then began making a series of lower highs and lower lows trading back down to its IPO opening price of $60 in October of that same year.
A bounce off the $60 level failed to gain traction and Zoom shares returned back down to $60 support. But a second December bounce turned into a trend and shares began making a series of higher highs and higher lows. It also established a $60 double bottom on the chart.
The Zoom momentum continued taking out several important levels of resistance. Then this month shares spiked higher. The nearly vertical move has been tempered by some recent sideways consolidation and this price action has formed a bullish flag on the daily chart.
The flag pattern projects a target price measured by taking the height of the flagpole and adding it to the top of the flag. It suggests that Zoom shares are headed back up to their 2019 high made shortly after their IPO.