ZBH pushes through Thursday's high
Zimmer Biomet Holdings Inc. (ZBH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZBH finished the week 2.56% higher at 160.40 after gaining $1.67 (1.05%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 160.40 marks the highest recorded closing price ever. Trading up to $1.02 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 159.83, Zimmer Biomet confirmed its breakout through the prior session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (ZBH as at Feb 14, 2020):
Friday's trading range has been $2.83 (1.78%), that's slightly above the last trading month's daily average range of $2.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ZBH.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on January 30th, ZBH lost -2.17% on the following trading day.
Buyers managed to take out the key technical resistance level at 159.79 (now S1), which is likely to act as support going forward. After having been unable to move lower than 157.39 in the previous session, the stock found buyers again around the same price level today at 157.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Zimmer Biomet. Out of 330 times, ZBH closed higher 53.33% 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 56.06% with an average market move of 0.61%.