ZTS pushes through Thursday's high
Zoetis Inc. Class A (ZTS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ZTS finished the month 10.68% higher at 151.68 after surging $2.57 (1.72%) today on high volume, outperforming the S&P 500 (0.77%). Today's close at 151.68 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 149.49, the market confirmed its breakout through the prior session high after trading up to $2.42 above it intraday.
Daily Candlestick Chart (ZTS as at Jul 31, 2020):
Friday's trading range has been $3.44 (2.31%), that's far above the last trading month's daily average range of $2.69. Weekly volatility is also higher, being slightly above 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 White Candle.
Crossing above the upper Bollinger Band for the first time since July 20th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 143.28 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 15th, ZTS gained 0.01% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Zoetis. Out of 66 times, ZTS closed higher 59.09% 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 60.61% with an average market move of 0.77%.