I purchased Zim yesterday on the break above $60 however, the stock reversed quite sharply and I exited for a small loss.
Would you say that I should have waited for more volume to come into the stock to signal a proper break? The volume in the stock yesterday was 200% more than daily average. What is your criteria in buying breakouts?
Thanks for the great service
Congratulations on exiting with a small losses as those will not hurt us. The failed breakout ZIM displayed on Wednesday was a disappointment. The stock formed an "outside day" or "bearish engulfing" candle on Wednesday. The failed breakout has been pretty common in this market.
The stock gapped-up on Wednesday with plenty of volume. and that was not a problem. It had nearly a 400% above average volume run rate, and that is what I want to see in a breakout. The stock just pulled back to close the gap from its Monday open. Therefore, I would not give up on ZIM making another breakout attempt. It has been on of the top IPO's of 2021.
A comparison chart shows how ZIM has performed as an IPO in 2021. That stock has done well in comparison to many of the more popular IPO Stocks this year.I am not giving up on ZIM! Please note that the shareholders on December 15 will receive a special $2.50 dividend ($250 for every 100 shares) on December 27.