ZBH closes within prior day's range after lackluster session
Zimmer Biomet Holdings Inc. (ZBH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ZBH ended the week 9.8% higher at 123.40 after gaining $1.40 (1.15%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.83 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZBH as at May 22, 2020):
Friday's trading range has been $2.42 (1.98%), that's below the last trading month's daily average range of $4.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZBH.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, ZBH actually lost -3.63% on the following trading day.
Prices are trading close to the key technical resistance level at 124.57 (R1). After having been unable to move lower than 120.65 in the prior session, the stock found buyers again around the same price level today at 121.17.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 127.20 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 120.65 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Zimmer Biomet. Out of 704 times, ZBH closed higher 53.69% 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 58.81% with an average market move of 1.03%.