Intraday Rebound Off of the First Support

ZIM had some troubles today. The price action of ZIM officially broke below the 12.50 support. 12.50 is now a resistance level. The media is blaming the selling on Maersk's earnings call, where the company provided poor guidance. Other shipping companies traded in sympathy to the poor guidance.

During intraday trading on this big selling day, we saw a rebound at the first major resistance level around the 11.50 price point. A rebound here is a good sign, but the breakdown below 12.50 was the first sign in several weeks that ZIM might finally start ticking down.

If the price climbs back above 12.50 very soon, then I would consider this a false breakdown. But if the price continues to fall back below 11.50, then I might consider securing some profits and waiting for another opportunity to get back in.

Check out the link directly below to see the previous outlook for ZIM.