The MACD Model Says It’s Time To Buy Zoom Video’s Stock
Many traders use moving averages to guide their decision-making.
- When a short-term moving average price of a stock exceeds a lower-term one, it shows there’s a good chance it’s in an uptrend.
- When the short-term average is below a longer-term average, it means there’s a good chance that the stock is trending lower.
- When these moving average price lines cross each other on a chart, traders use this as a signal to buy or sell.
The Moving Average Convergence Divergence Indicator (MACD) is a popular way to measure moving averages. It generally uses three and combines them to generate signals. On the chart below, when the red line crosses above the black line, it’s a sell signal. When it crosses below it, it’s a buy signal.
Since the beginning of the year, it has generated accurate signals for Zoom Video Communications, Inc. (NASDAQ:ZM) and it just had another buy signal. This means there’s a good chance the stock trends higher.
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