Shares of global animal health company Zoetis (ZTS) have been climbing higher and higher the past year. When we last reviewed the charts of ZTS way back on Jan. 21 we wrote that, "It looks like ZTS can move higher in 2021 as our weekly chart and the Point and Figure chart suggest. The question is when. I would anticipate some further sideways price action before renewed strength. Buyers need to be patient."
Let's check in on the charts again.
In the updated daily bar chart of ZTS, below, we can see that buyers indeed had to be patient until early April when the uptrend resumed. Prices reached our Point and Figure target of $194 in early July and have continued higher after a correction in September. ZTS is trading above the rising 50-day moving average line and the rising 200-day average line.
The On-Balance-Volume (OBV) line has been steady since July but may have started a new leg higher in December. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of ZTS, below, we see a bullish picture. Prices have maintained a longer-term uptrend the past three years. The slope of the 40-week moving average line is positive.
The weekly OBV line is bullish. The MACD oscillator is also bullish.
In this daily Point and Figure chart of ZTS, below, we can see that the software is projecting a potential upside price target in the $325 area.
Bottom-line strategy: ZTS is in a longer-term uptrend that should continue when the weakness in the broader market averages abates. Traders could go long ZTS on available weakness risking to $222. The $325 area is our Point and Figure price target.
