ZTS unable to break through key resistance level
Zoetis Inc. Class A (ZTS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ZTS ended the month -1.69% lower at 137.04 after surging $5.06 (3.83%) today, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 133.55, Zoetis confirmed its breakout through the prior session high after trading up to $4.27 above it intraday.
Daily Candlestick Chart (ZTS as at Jun 30, 2020):
Tuesday's trading range has been $5.76 (4.36%), that's far above the last trading month's daily average range of $3.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZTS.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 50-day moving average at 132.27. When this moving average was crossed above the last time on April 29th, ZTS gained 2.99% on the following trading day. Unable to break through the key technical resistance level at 137.70 (R1), the share closed below it after spiking up to 137.82 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Zoetis. Out of 75 times, ZTS closed higher 50.67% 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 62.67% with an average market move of 1.14%.