- ZIM stock price fell 26% in the previous week after the release of dividend.
- ZIM Integrated Shipping services (NYSE: ZIM) paid a dividend of $6.40.
- ZIM stock price drops below 50 day EMA showcase downtrend.
ZIM stock price fell 26% in the previous week and lost almost all the gains generated in the past 3 months. Zim Integrated Shipping services (NYSE: ZIM) paid a dividend of $6.40 which negatively impacted the market price. However, after the fall Zim stock witnessed a spike in the buying volume indicating two different scenarios. One is either the previous short positions are closed or some genuine investors had accumulated the stock at lower levels.
Zim stock is trading below the 200 day EMA showcase positional trend is in downward direction. However, the price has gone far away from the 50 day EMA and bulls might try to give a short term pull back from the demand zone.
Zim stock price closed the previous session at $17.39 with an intraday decline of -1.31% and market capitalization stands at $2.09 billion. At the mid of March, Zim Integrated (NYSE: ZIM) reported quarterly results which met the analyst estimates and prices surged 6% on a single day. Later, prices rise upward and attempt to break the $25.00 hurdle level. However, the attempt was not successful and prices failed to give follow up momentum. Zim stock price consolidated for a few days in a hope of upside range expansion but prices took the opposite direction.
Is the ZIM stock price oversold?
Zim stock opened a gap down on April 4, 2023 and dropped below the lower range which disturbed the market sentiment. Later, prices tried to bounce back but $20.00 acted as a strong resistance.
Presently, Zim stock is near to the demand zone at $16.00 and might test a new 52 week low. However, if Zim stock price took support in the demand zone then we may see wide range consolidation in coming months. Zim stock price in an oversold zone and the downfall might take a halt.
ZIM stock: Technical outlook
Zim stock has lost a big chunk of its market capitalization which disturbed the sentiment of the long term investors. However, if overall market sentiment improves, then we may see short term recovery from the lower levels. The technical indicators like MACD had generated a negative crossover indicates bearish momentum may continue for some time.The RSI at 30 near oversold territory denotes short term relief rally may trigger anytime from the lower levels.
Conclusion
ZIM Stock price fell 26% in the previous week and lost a big chunk of market capitalization. ZIM Integrated Shipping services (NYSE: ZIM) paid a dividend of $6.40 but market prices reacted negatively to this decision. The technical analysis suggests, Zim stock price might test the new 52 week low in coming weeks. However, if buyers defend the demand zone then prices might enter into the wide range of consolidation.
Technical levels
Resistance levels : $20.00 and $25.00
Support levels : $16.22 and $14.00
Disclaimer
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