Zimmer Biomet Holdings (ZBH) is best known for making implants for knees, hips, elbows, and shoulders. Real Money readers who are getting older (present company included) should be paying attention to this name. LOL.
Let's check out the charts and indicators before complaining about our knees and hips.
In the daily bar chart of ZBH, below, I can see that the shares made a very choppy base pattern from June to early November. Prices turned higher in early November and now trade above the rising 50-day moving average line and above the rising 200-day line.
The trading volume shows an increase from September to tell me that there is increased investor interest in the stock. The On-Balance-Volume (OBV) line does not make a low until February. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in buy territory.
In the weekly Japanese candlestick chart of ZBH, below, I can see that the shares are rallying to the upside from a bigger base than the daily bar chart shows. The shares here are trading above the rising 40-week moving average line.
The weekly OBV line shows strength from November. The candles do not show a top reversal and do not show us upper shadows. The MACD oscillator turned bullish in late 2022.
In this daily Point and Figure chart of ZBH, below, I can see a potential upside price target in the $149 area.
In this second Point and Figure chart of ZBH, below, I used weekly price data with a five-box reversal filter. Here the software suggests a price target in the $175 area.
Bottom-line strategy: Traders could try to buy ZBH on a shallow dip towards $130 risking below $124. The $149 area is my first upside price target.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
