BA is breaking down and setting up for a powerful move lower. Biden has essentially declared war on shipping companies for hiking prices post-COVID and has threatened to lower prices by executive order. This was all the bulls needed to head for the exits and take their profits after a strong run in 2022.
Relative strength has broken down over the last 2 weeks as the stock fell more aggressively than the overall market. ZIM now trades near the crucial $48 level which served as resistance before the last breakout and support on several re-tests of this area. It is also sitting on the 200-day moving average which is the line in the sand for long-term holders. If ZIM breaks this area, which I believe it will, expect to see the stock fall fast and hard.
Several days of aggressive selling over the last two weeks point to heavy institutional selling and the beginning of Stage 3 (see Wyckoff Market Cycles). Don't be surprised if ZIM falls another 50% or more from today's level. Look for a move below $47.50 on above-average volume. That will be trigger to go short ZIM.
Relative strength has broken down over the last 2 weeks as the stock fell more aggressively than the overall market. ZIM now trades near the crucial $48 level which served as resistance before the last breakout and support on several re-tests of this area. It is also sitting on the 200-day moving average which is the line in the sand for long-term holders. If ZIM breaks this area, which I believe it will, expect to see the stock fall fast and hard.
Several days of aggressive selling over the last two weeks point to heavy institutional selling and the beginning of Stage 3 (see Wyckoff Market Cycles). Don't be surprised if ZIM falls another 50% or more from today's level. Look for a move below $47.50 on above-average volume. That will be trigger to go short ZIM.
Comment:
Typo in the beginning. The stock is ZIM... not BA.