ZBH rallies 1.77% on high volume
Zimmer Biomet Holdings Inc. (ZBH) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ZBH finished the week -4.11% lower at 123.30 after surging $2.15 (1.77%) today on high volume, slightly outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over four weeks. Trading up to $0.99 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ZBH as at Oct 12, 2018):
Friday's trading range has been $2.52 (2.06%), that's slightly above the last trading month's daily average range of $2.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZBH.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 122.96 (now S1), which is likely to act as support going forward. After having been unable to move above 124.04 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 124.11. The last time this happened on Tuesday, ZBH lost -2.61% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 128.74.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Zimmer Biomet. Out of 1,258 times, ZBH closed higher 54.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.85% with an average market move of 0.51%.