ZBH unable to break through key resistance level
Zimmer Biomet Holdings Inc. (ZBH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ZBH finished the month -5.52% lower at 119.36 after gaining $2.46 (2.1%) today, outperforming the S&P 500 (1.54%). Closing above Monday's high at 117.78, the stock confirmed its breakout through the previous session high after trading up to $3.00 above it intraday.
Daily Candlestick Chart (ZBH as at Jun 30, 2020):
Tuesday's trading range has been $4.81 (4.12%), that's slightly above the last trading month's daily average range of $4.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 White Candle. The last time a White Candle showed up on June 15th, ZBH gained 3.09% on the following trading day.
Unable to break through the key technical resistance level at 120.07 (R1), Zimmer Biomet closed below it after spiking up to 120.78 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 115.51 in the prior session, the share found buyers again around the same price level today at 115.97.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Zimmer Biomet. Out of 584 times, ZBH closed higher 51.20% 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 54.45% with an average market move of 0.41%.