September 5 Chart of the Day - Zimmer Biomet

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Medical device provider Zimmer Biomet (ZBH) shares dropped over 8% on Thursday after the company disclosed significant challenges stemming from an enterprise resource platform (ERP) transition.

The company's management team is working with third-party consultants to address the issue but until a fix is in place analysts believe the stock and earnings outlook remain under pressure from the ongoing ERP transition challenges.

Their stock is trading down over 8% today so we wanted to review their chart from a price action technical analysis perspective.

We have featured over 250 Charts of the Day since May 2023 and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

On the monthly chart we can see that after setting its $180.36 all time high (ATH) back in 2021 price fell dramatically since then down under $106 today and seemingly is in search of a bottom.

From a basic structure standpoint, using only support/resistance and trend, we can see a potential "magnet" area down in the $95 area.

Weekly Chart

 
On the weekly chart we can see with much more clarity the fall from ATHs and the steady decline during the past few years.  

Trading around $106 earlier today price is quickly approaching what may be a potential "sweet spot" confluence area on the chart where two trend lines intersect near a major support/resistance level.

Only time will tell for sure what price will do next...

We've layered in traditional and advanced Fibonacci levels, support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans. 

So what's next?