Zoom Communications Inc. (ZM) is currently progressing through a complex W–X–Y corrective pattern on the daily chart. Waves (W) and (X) have completed their formation, and the market is now in Wave (Y), unfolding within a clearly defined parallel channel.

This setup aligns with the internal structure of Wave {B}, suggesting the retracement is progressing in an orderly manner. Based on Fibonacci projections, Wave (Y) could reach its termination near the 100% extension of Wave (W), which also aligns with the lower boundary of the channel—serving as potential support.

The current correction remains valid as long as price does not exceed the origin of Wave (W).

ZM Elliott Wave technical analysis

Function: Countertrend.

Mode: Corrective.

Structure: Double Three/Complex Correction.

Position: Wave {B}.

Direction: Downtrend.

Details: Higher-degree correction continues as a W–X–Y structure. Wave {C} is anticipated after the completion of Wave (Y).

The weekly chart reveals that ZM is experiencing a higher-degree corrective phase, forming a double three W–X–Y structure identified as Wave {B}. The internal compositions of Waves (W) and (X) are clearly visible on the daily timeframe.

The unfolding of Wave (Y) aligns with the broader corrective logic, confirming that the structure is adhering to Elliott Wave guidelines. After Wave (Y) completes, the pattern is expected to transition into an impulsive Wave {C}, indicating a potential bullish reversal following the conclusion of the correction.

The proportion between Waves (W) and (Y), along with the principle of alternation, supports the integrity of this wave count.

ZM Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.