In my last review of animal healthcare company Zoetis (ZTS) way back on July 12, 2022 I wrote that, "Aggressive traders could go long ZTS closer to $170, risking to $160. On the upside we could see a rally to the $195 area for starters." Share prices continued to sink lower and traders were stopped out with a loss.
Fast forward, however, and ZTS stock is now closing in on my original price target so let's check the charts again and hopefully do better.
In this updated daily bar chart of ZTS, below, I can see that the shares gapped down into a November nadir. Prices reversed direction and quickly recovered. ZTS pulled back in December and then resumed its advance in January. The shares now trade above the rising 50-day moving average line and above the flat/neutral 200-day line.
The On-Balance-Volume (OBV) line has been very strong since the end of December and tells me that buyers of ZTS have been more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of ZTS, below, I see a bullish pattern. The shares are in an uptrend and trade above the flat 40-week moving average line.
The weekly OBV line has trended higher from December and confirms the price gains. I can see a number of lower shadows on the candles in the past five months. The MACD oscillator is bullish.
In this daily Point and Figure chart of ZTS, below, I see a price target in the $211 area. A trade at $187.86 will be a new high for the move up and should refresh the uptrend.
In this second Point and Figure chart of ZTS, below, I used weekly price data. Here I can see the same price target as the daily chart above -- $211.
In this third Point and Figure chart of ZTS, below, I used weekly price data with a five-box reversal filter. Here it is shows us a potential target in the $367 area.
Bottom-line strategy: Traders could go long shares of ZTS on a dip into the $185-$180 area. Risk to $174. The $211 area is my price objective for now.
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