ZTS closes above its opening price after recovering from early selling pressure
Zoetis Inc. Class A (ZTS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ZTS ended the week 2.06% higher at 130.11 after edging lower $0.22 (-0.17%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.72 lower after the open, Zoetis managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, ZTS gained 3.08% 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 May 22, 2020):
Friday's trading range has been $1.90 (1.47%), that's far below the last trading month's daily average range of $3.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZTS.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 127.70 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Zoetis. Out of 105 times, ZTS closed higher 66.67% 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 65.71% with an average market move of 1.43%.