How will the reported results affect the company's shortâterm technical chart patterns and potential trading strategies (e.g., momentum, breakout, or meanâreversion)?
Zoomdâs surpriseâstrong Q2 earnings â a 40âŻ% jump in revenue and a sentiment score in the 70ârange â should trigger an immediate bullish impulse in the TSXVâlisted stock. In the past 5âday window the shares have been consolidating just below the 20âday EMA (~$0.42) and have formed a tight ascendingâtriangle with resistance around $0.48. The earnings beat is likely to provide the catalyst needed to break that level, delivering a gapâup/openâhigh on the Augustâ14 session and pushing the price into the 50âday EMA zone. Expect the RSI to sprint into the 60â70 band, confirming momentum, while onâbalance volume should turn sharply positive, reinforcing the breakout narrative.
From a tradingâstrategy perspective, a momentumâlong play looks most efficient: enter on a confirmed close above the $0.48 resistance (or on a strong intraday breakout with volume >2Ă average) and target the next key upside cluster near $0.60â$0.65 (the prior swingâhigh and the 100âday EMA). For traders preferring a more disciplined entry, a pullâback to the brokenâthrough $0.48 line or to the 20âday EMA can serve as a secondary entry with a tighter stop just below $0.44. Conversely, meanâreversion setups are less attractive given the robust topâline growth and the likely shift in market sentiment; only consider shortâterm shorts if the price reâtests the $0.55â$0.57 range and shows a rapid reversal in volume and a drop in RSI below 45. Overall, the earnings news tilts the shortâterm chart toward a breakoutâdriven, momentumâbiased approach, with risk managed by stops under key movingâaverage support levels.