Zimmer near Resistance

Published on Tuesday, 31 January 2012 06:52 Written by Christopher Lynn

New York, January 31st (TradersHuddle.com) - Shares of Zimmer Holdings, Inc. (NYSE:ZMH) are trading very close to calculated resistance at $61.89 with the current price action closing at just $60.95 placing the stock near levels that make it difficult to buy.

Zimmer Holdings, Inc. (NYSE:ZMH) designs, manufactures, and markets orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products. The Company also provides other healthcare related services.

Zimmer's current stock range is defined by current calculated support defined at $47.00 and by the resistance level at $61.89, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Zimmer, as the stock is well above support, however, as the stock pulls back towards $47.00 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $61.89 then traders will get an opportunity to enter Zimmer stock by establishing a position as the stock moves to a higher range.