Will ZOETIS INC Break Out? A Technical Analysis Perspective.

Our stock screener has detected a potential breakout setup on ZOETIS INC (NYSE:ZTS). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:ZTS.

Deciphering the Technical Picture of NYSE:ZTS

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to ZTS. Both in the recent history as in the last year, ZTS has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, ZTS did better than 82% of all other stocks. We also observe that the gains produced by ZTS over the past year are nicely spread over this period.
• ZTS is one of the better performing stocks in the Pharmaceuticals industry, it outperforms 76% of 204 stocks in the same industry.
• ZTS is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• ZTS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• In the last month ZTS has a been trading in a tight range between 192.01 and 201.92.

Our latest full technical report of ZTS contains the most current technical analsysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:ZTS currently has a 9 as setup rating:

ZTS has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 198.95. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 198.15, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ZTS in the last couple of days, which is a good sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:ZTS and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.