Big Bearish Day For Cloud-Based Software Stocks
InTheMoneyStocks.com | Apr 04, 2019 01:50PM ET
Most of the leading cloud-based software stocks fell sharply lower on Thursday. Leading stocks like ZEN, WDAY, CRM, DATA, COUP and others fell by more than 3%. This important industry group has been driving the technology space for all of 2019. When a leading sector loses it leadership, it could just be rotation into another group – or a sign of a topping market.h3 Watch This Price/h3
One stock that caught my eye in the cloud-based software niche is Zendesk, which has been a major winner in 2019, but on Thursday, fell by 4.62% to $81.48 a share. The stock is now forming a bearish engulfing candle on the daily chart. It is also trading below its important 20-day moving average, which has been signaling a strong up-trend for Zendesk – until Thursday. If the stock settles at current levels, it will eclipse the prior two weeks of upside and be a negative reversal. At this point, the next important daily chart support level for ZEN is around $75. That's where the stock pivoted to the upside on March 8, 2019 and is where it will likely be defended again when retested.
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