NYSE:ZTS may be ready to breakout.

Our stock screener has spotted Zoetis Inc Cl A (NYSE:ZTS) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:ZTS.

What is the technical picture of NYSE:ZTS telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall ZTS gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ZTS is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• ZTS is one of the better performing stocks in the Pharmaceuticals industry, it outperforms 78% of 238 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.
• When comparing the performance of all stocks over the past year, ZTS turns out to be only a medium performer in the overall market: it outperformed 67% of all stocks.
• In the last month ZTS has a been trading in a tight range between 199.59 and 210.10.

How does the Setup look for NYSE:ZTS

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:ZTS this score is currently 8:

Besides having an excellent technical rating, ZTS also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 209.7. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 206.98, a stop order could be placed below this zone.

Trading setups like NYSE:ZTS

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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