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TA Challenge: Chart to find breakdown stocks
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TA Challenge: Chart to find breakdown stocks

A support is the price level where a stock is likely to rebound. A strong or major support is the price level where a stock tested several times and rebounded. Conversely, a weak or minor support is the price level where a stock tested a few times and may rebound or breakdown. So what should you do when a stock breaks down? This is discussed below.
FedEx
Fig. 1. FedEx
Fig. 1. FedEx
The figure above shows the chart of $FedEx (FDX.US)$. In Sep 2022, FedEx reported a 20% yoy drop in first-quarter profit. Moreover, the company expects business conditions to weaken further in the current quarter amid weaker global volume. The stock broke down below its support around USD198.50 that day. Since it gave a weak outlook, it's better to cut loss near the day's high. Find out the level it is likely to fall to. It has a support zone of between USD145.50 and USD131.00. Also it tends to fall until it's very oversold with RSI equal to or below 20. Indeed, the stock fell to a level around the middle of the support zone. Should you buy back the stock? It is better to wait until the outlook improves.
Sembcorp Marine
Fig. 2. SembMar
Fig. 2. SembMar
$Seatrium (S51.SG)$ broke down below the supports at SGD0.111 and USD0.105 in Sep 2022 on falling oil prices. There was a major support at SGD0.099. The MA200 also provided dynamic support at USD0.101. Indeed, it rebounded at SGD0.101 in late Sep on rumours of OPEC+ cutting production by a large amount. Should you have bought at that level? Yes, a large production cut would provide a big lift to oil prices and SembMar's price. The rumour turned out to be true and it also won a USD3 b contract from Petrobas. Oil prices surged and so did its price.
$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Imperial Petroleum (IMPP.US)$ $Occidental Petroleum (OXY.US)$ $SIA (C6L.SG)$ $AEM SGD (AWX.SG)$ $SamuderaShipping (S56.SG)$ $Jiutian Chemical (C8R.SG)$ $Rex Intl (5WH.SG)$ $RH PetroGas (T13.SG)$ $Geo Energy Res (RE4.SG)$ $Golden Energy (AUE.SG)$
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