Is Zoetis Prepping For A Breakout?
Gary S. Morrow | Feb 12, 2021 04:09PM ET
Shares of Zoetis (NYSE:ZTS) have been trading in a very narrow range since last August. As the week comes to an end, the stock is bumping up against a key overhead trendline that links the November peak (all-time highs) and the January high. With solid footing underneath, we believe ZTS is setting up well for a fresh rally leg.
Since the current seven-month consolidation began the $152.00 area has provided solid support. This zone has held the August, September and January lows. In late January, the 200-day moving average came into play as well. The 200D provided the footing in early June shortly after the 50/200D bull cross.
ZTS entered overbought territory in August. The sideways action since has completely worked that off. A post earnings rally (earnings due next Tuesday/AM) will have plenty of room to run. A clear take out of the January high ($170.50) could provide the spark. On the downside, a close back below $158.00 would violate this week’s low, sending a clear warning sign that the current consolidation is still intact.
Zacks has thoughts on ZTS .
Note: We are long ZTS in our Tactical Opportunity Portfolio.
You can read Gary S. Morrow's original post here .
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