Zoetis, Inc. discovers, develops and manufactures a portfolio of animal health medicines and vaccines. Its products are complemented by diagnostic products, genetic tests, bio devices and services.
Take a look at the 1-year chart of Zoetis (NYSE: ZTS) below with added notations:
ZTS had been mostly consolidating over the past several motnhs, while also stalling at the $130 level (green). That level was ZTS’s 52-week high resistance barrier, and now that the stock has broken above it, traders could expect it to take another leg higher.
The Tale of the Tape: ZTS broke its 52-week resistance at $130. The ideal long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $130 could negate the forecast for a move higher.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT