ZOM: Should we panic-sell this now?
Hello traders and investors! Let’s talk about ZOM today, and do our usual Multi Time Frame Analysis (MTFA)!
First, let’s start with the 1h chart. ZOM did a classic Double Top chart pattern at $ 2.91 (black line), and now it is dropping to its support levels. The first support lost, after some fight, was the 21 ema. Then the green line at $ 2.34, and now it is trying to lose the blue line at $ 2.13 as well. Since it is a short-term bear trend, ZOM will keep seeking for lower supports, until one works and holds the price.
What’s more, according to the Principle or Polarity, when a support is lost, it is supposed to work as a resistance next, and vice-versa. The green line and the 21 ema could make a strong resistance zone for ZOM in the short-term. Also, keep in mind that ZOM lost the green line by doing a Gap, which is also going to work as a resistance.
The fight is not going to be easy for ZOM, but let’s see if the daily chart has something else to tell us:
In the mid-term, the trend is clearly bullish, and in a bull trend, pullbacks are expected and seen as opportunities to buy.
We have a strong support area between the 21 ema, the black line at $ 1.48 (previous top) and the Gap (yellow rectangle), and ZOM could retest again this area and the trend would still be bullish.
What is interesting is the volume, as it increases during upside movements, and decreases when the stock drops or enters in a congestion, meaning that the buy force is stronger than the sell force at this moment.
And if you liked this analysis, remember to follow me to keep in touch with my daily updates. And support this idea if it helped you! Let's wait for more confirmation on the charts, before jumping into any conclusion regarding ZOM.
Thank you very much,
First, let’s start with the 1h chart. ZOM did a classic Double Top chart pattern at $ 2.91 (black line), and now it is dropping to its support levels. The first support lost, after some fight, was the 21 ema. Then the green line at $ 2.34, and now it is trying to lose the blue line at $ 2.13 as well. Since it is a short-term bear trend, ZOM will keep seeking for lower supports, until one works and holds the price.
What’s more, according to the Principle or Polarity, when a support is lost, it is supposed to work as a resistance next, and vice-versa. The green line and the 21 ema could make a strong resistance zone for ZOM in the short-term. Also, keep in mind that ZOM lost the green line by doing a Gap, which is also going to work as a resistance.
The fight is not going to be easy for ZOM, but let’s see if the daily chart has something else to tell us:
In the mid-term, the trend is clearly bullish, and in a bull trend, pullbacks are expected and seen as opportunities to buy.
We have a strong support area between the 21 ema, the black line at $ 1.48 (previous top) and the Gap (yellow rectangle), and ZOM could retest again this area and the trend would still be bullish.
What is interesting is the volume, as it increases during upside movements, and decreases when the stock drops or enters in a congestion, meaning that the buy force is stronger than the sell force at this moment.
And if you liked this analysis, remember to follow me to keep in touch with my daily updates. And support this idea if it helped you! Let's wait for more confirmation on the charts, before jumping into any conclusion regarding ZOM.
Thank you very much,
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