2 Popular Stay-At-Home Stocks Trading Higher Following J&J's Vaccine Pause
Peloton Interactive Inc. (NASDAQ:PTON) and Zoom Video Communications Inc. (NASDAQ:ZM) are both trading higher Tuesday after the U.S. FDA calls for a pause on Johnson and Jonhson's (NYSE:JNJ) COVID-19 vaccine amid some blood clotting cases.
Below is a technical look at each chart.
Peloton Daily Chart Analysis: The stock has been able to find support near the $100 level multiple times in the past. This area was also once resistance and may hold as support again in the future.
The red lines on the chart following the trend show that the stock may be forming a head-and-shoulders pattern. This bearish reversal pattern could see the stock make a lower move if it breaks below the $100 support.
The stock is trading above the 200-day moving average (blue), indicating the sentiment in the stock has been bullish recently. This indicator is also another area where the stock may find support.
Zoom Daily Chart Analysis: The chart shows that the stock looks to be forming into what technical traders would call a falling wedge.
The stock is making both lower highs and lower lows when looking at the chart. Connecting the highs and the lows shows that the highs are moving lower faster than the lows. This means they will eventually catch up and the stock may make a stronger price push in either direction.
The falling wedge pattern is considered a bullish reversal pattern and the stock would need to cross above the line that connects the highs before the trend in the stock may be considered changed.
The stock is trading below the 200-day moving average (blue), indicating the sentiment in the stock has been bearish recently. This indicator is also another area where the stock may find resistance.
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