ZIM is breaking down and likely heading much lower. The stock has been a market leader in 2022 along with other shipping stocks. Profits are up triple digits after shippers realized they could 10X their rates to transport cargo containers after the pandemic.
The White House has essentially declared war on these companies and institutional investors are heading for the exits.
After a strong Stage 2 (markup phase), ZIM is in Stage 3 (distribution phase) and quickly head for Stage 4 (markdown/capitulation).
Relative strength is breaking down and the RS line is trending aggressively lower.
The 50-day moving average is rolling over and the 200-day line has now been broken (big no-no).
You can also see institutional selling in the volume footprint. Traders may consider selling ZIM short here with a stop above the pivot high near $53.
The White House has essentially declared war on these companies and institutional investors are heading for the exits.
After a strong Stage 2 (markup phase), ZIM is in Stage 3 (distribution phase) and quickly head for Stage 4 (markdown/capitulation).
Relative strength is breaking down and the RS line is trending aggressively lower.
The 50-day moving average is rolling over and the 200-day line has now been broken (big no-no).
You can also see institutional selling in the volume footprint. Traders may consider selling ZIM short here with a stop above the pivot high near $53.