Zimmer Biomet (ZBH) has a great-looking chart. Further gains lie ahead in my opinion.
This daily chart of ZBH, above, is strong, technically speaking. Prices are above the rising 50-day and 200-day moving averages. We can see a golden cross of those mathematical trendlines in April. With lows in October and February, we can measure the height of this double bottom and project it upward for a $125 price target.
The On-Balance-Volume (OBV) line has moved up strongly from February, showing that buyers have been more aggressive on days when ZBH has closed higher. There is a bearish divergence in April and May as prices made higher highs, but the momentum study made a lower high. This divergence means that the rally has slowed and may foreshadow a correction that could be bought.
In this weekly chart of ZBH, above, we can see prices firmly above the rising 40-week moving average line. The OBV line on this weekly timeframe is moving up nicely and the Moving Average Convergence Divergence (MACD) is in a very bullish configuration.
A pullback towards support around $115 may be all the dip we are going to see for ZBH. Traders could consider buying on this shallow pullback, should it materialize in the short term. Point and figure price projections measure as high as $188 for ZBH.