Zealand Pharma A/S (ZEAL)

ZEAL stock forecast: buy or sell

ZEAL stock outlook

  • Zealand Pharma A/S stock only changed -0.97% to close at $36.60 on the stock market on Thursday.
  • Looking at the chart, price is drawing an scaled downtrend since late May with lower tops and lower bottoms. this downtrend marked a -10.73% loss(from its highs at $41.00).
  • Zealand Pharma A/S, a biotechnology company, engages in the discovery and development of peptide-based medicines in Denmark.
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Disclaimer:
The comments written in this post are personal and not recommendations for you to buy or sell stocks. The author of this document does not know the particular situations of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for educative motives only

ZEAL stock chart overview

Should I buy Zealand Pharma A/S stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ZEAL stock a buy?

In the current situation of Zealand Pharma A/S there is not any eligible buy setup. This doesn't mean ZEAL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Zealand Pharma A/S stock?

When you own a stock with some profit, it's really difficult to decide the good moment to sell and get your benefits. Just as when we have to buy shares, determining when is the best time to sell is not a random decision, and we must use our own trading strategy. We like very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups should not be used for selling short Zealand Pharma A/S stock

A guiding principle is that you should never hold an operation that yields greater losses than those expected at the time of the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Zealand Pharma A/S stock?

Currently, Zealand Pharma A/S stock doesn't match any of our preferred sell setups, so if you hold Zealand Pharma A/S stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Zealand Pharma A/S stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month we couldn't find any rating for Zealand Pharma A/S

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Technical analysis

Zealand Pharma A/S accumulates a selloff of -10.73% since its latest top late May at $41.00. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 2 consecutive lower tops

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to find price points in the stock price action that tend to act as barriers, containing the price of shares to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the other hand, a resistance level is where the price tends to find a curb as it rises. In the same manner, the price is more likely to "rebound" at this level, and if it finally breaches this level, the price will climb easily until it meets the next resistance

The current resistance levels are:

  • R1: $36.84 (0.66% above)
  • R2: $37.12 (1.42% above)
  • R3: $38.26 (4.54% above)
  • The current support levels are:

  • S1: $35.50 (-3.01% below)
  • S2: $35.00 (-4.37% below)
  • S3: $33.26 (-9.13% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known practice that was created by John Bollinger. It is made up of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on June 29, the price has bounced off by 14.05%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves from 0 to 100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    When the Relative Strength Indicator moves for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator gets of little use, and we find ourselves in one of these situations.

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    Earnings and financials

    In mid-May, ZEAL hosted the investors event and released the Q1 report. ZEAL underperformed analysts estimates and posted an Earnings per Share of $-0.72, that is a -5.88% lower than the predictions of $-0.68. Reported sales were $1.8 million versus estimates of $1.8 million.

    Compared to the same quarter last year, EPS was $-0.62, so posted EPS means a reduction of -16.13%. Revenue sank a -87.27% on an annualized basis in the Q1, from $14.5M to $1.8M last quarter.

    ZEAL is hosting the Q2 earnings call on mid next August. Analysts forecast a per-share earnings of %s of $-0.25, that is a 65.28% more than Q1. If you hold or you are considering buying ZEAL shares, you must be vigilant as the earnings reporting day usually has a higher than usual volatility, and price can gap up or down with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can obtain more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.zealandpharma.com.

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