ZI’s Sherlock’s Pipe Hot IPO Pullback Setup

Typically after the initial sizzle of a hot IPO, the stock settles down.

But in a quality growth name, after the initial excitement and the flippers have lost interest, this is when the real move can set up.

Following is a daily ZI from its debut in June which shows a 5 day 100% move from the low of its first day of trade.

On Monday, ZI turned up decisively after basing out from what I call a Sherlock’s Pipe pattern.

There the rollover of the pipe followed by the base or bowl.

When the pattern works, the stock smoke’s coming out of the bowl.

Tuesday, ZI put in an inside day Pause Day.

Wednesday, ZI pushed higher.

The pattern implies a run to the 55 region in the near-term.

In the interest of fair disclosure, members of the Hit & Run Report have a long swing position in ZI.

Pos ZI

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