- ZIM is a shipping company based in Israel offering cargo transportation.
- Israel recently affirmed striking the Gaza strip, may affect the commercial sector.
- ZIM stock prices surged by 7.60% in the intraday session.
Zim Integrated Shipping Services Ltd (NYSE: ZIM) is a company based in Israel. It operates as a fleet and a network of shipping lines that offers cargo transportation services over all major trade routes across the globe. Whole world being engaged in global trades, the shipping industry plays a crucial role as it bridges the producers to the consumer.
One of the major factors that affects the shipping and cargo sector is the insurance industry. Amid the ongoing war between Russia and Ukraine, the harmony of the shipping industry with the insurers have gone tumultuous. A host of shipping insurers altered their policies for 2023 to exclude claims linked to Russia’s war with Ukraine.
Airstrike to Wreck Company?
According to the reports of the Guardian, Israel conducted airstrikes on the central Gaza Strip early on Thursday, hours after the military mentioned intercepting a rocket being fired from the Palestinian territory. Gaza strip, situated near the sea, has only a small port – Port of Gaza.
The Port of Gaza has been under the Israeli beleaguerment since 2007. This was one of the ports that was used by the shipping companies. The airstrike may cause chaos in the Israel-based companies as such military steps cause a turmoil in the country.
ZIM Stock Price Analysis
The ZIM prices formed a smile-like shape after breaking the regression channel. The grin might soon turn to grim due to unforeseen military action. If the share remained unaffected, the current prices of $20.39, can rally near $42.50, after breaching the level of $28.86. The recent volume shows buyers taking interest in ZIM shares.
The RSI escalates to the ceiling range displaying buyer-dominance due to rising prices. The MACD records long buyer participation while the lines diverge for the bulls. The company is currently underperforming to its capabilities, but may continue due to uncontrollable factors.
Conclusion
The ZIM stocks are met with gloomy market scenarios first due to the Russia-Ukraine war and now due to the airstrike. The shipping company can find a way to make this work only if it executes the damage control strategy as soon as possible to prevent irreversible damages. The holders to watchout for the breakout near $28.86.
Technical levels
Support level: $11.00
Resistance level: $30.85
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/02/02/zim-stock-prices-form-silly-grin-for-holders-can-reach-par-40/