ZTS closes below its opening price unable to hold early session gains
Zoetis Inc. Class A (ZTS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ZTS finished the week 3.79% higher at 144.17 after losing $0.77 (-0.53%) today, underperforming the S&P 500 (0.18%). Trading $0.46 higher after the open, Zoetis was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, ZTS actually gained 1.37% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ZTS as at Feb 14, 2020):
Friday's trading range has been $1.23 (0.85%), that's far below the last trading month's daily average range of $2.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZTS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 146.26 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Zoetis. Out of 39 times, ZTS closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 69.23% with an average market move of 1.77%.