October 24 Chart of the Day - Zimmer Biomet
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Indiana based Zimmer Biomet (ZBH) is the nation's largest pure-play maker of orthopedic devices. The company designs, develops and manufactures reconstructive orthopedic implants; sports injury repair and trauma products; and related orthopedic surgical products. Its primary customers include musculoskeletal surgeons, neurosurgeons, hospitals, distributors, and, in their capacity as agents, healthcare purchasing organizations or buying groups. ZBH shares are a component of the S&P 500.
Trading around $105 today and well off its $180.36 all time highs (ATH) price has been making a series of lower lows and lower highs as it gravitates back down towards a trend line establish about a decade and a half ago. We can clearly see this on the monthly chart applying price action technical analysis tools.
Moving down to the weekly chart and layering in additional price action tools we can see that price may have a date with $100 or even below.
There's plenty of structure down in that area that can often act like a magnet to help pull it towards there.
However, should price decide it wants to move back to the upside and not continue down below $100 we've identified potential upside targets should price want to continue its lower high / lower low dance.
Regardless of what price decides we've created a chart that both investors and traders can develop a plan from.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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