On "Mad Money" on Wednesday night, host Jim Cramer took a question about Zoetis Inc. (ZTS) .
"This story is resistant to recession, but it's also up a lot. Let it come down," was Cramer's advice.
Let's check out the charts of this animal health company.
In this daily bar chart of ZTS, below, we can see that prices have weakened a little but remain above the rising 200-day moving average line. The On-Balance-Volume (OBV) line shows only modest weakness since the middle of February so for now we can say that investors have largely stayed with their long positions. The Moving Average Converge Divergence (MACD) oscillator has recently moved below the zero line for an outright sell signal.
In this weekly bar chart of ZTS, below, we can see that prices have pulled back recently and are in position to test the rising 40-week moving average line. The weekly OBV line has been stalled the past three months. The MACD oscillator has crossed to the downside at a lower high than the price action. This is a bearish divergence and a take-profits sell signal.
In this daily Point and Figure chart of ZTS, below, we can see a possible or potential downside price target in the $109 area.
Bottom line strategy: It looks like Jim Cramer and I are on the same page with ZTS -- let it come down before considering the long side.
