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
In the current situation of Zoetis there is just one buy setup eligible:
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that shares price doesn't have upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Zoetis can break to all-time highs any time soon, as it only needs to rise a 4.07%. The buy point is at $165.82 if you want to trade with this strategy. The stop loss would be set at $149.24
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$165.82||$149.24||10%|
When is it time to sell Zoetis?. Trading strategies give us the ability us to avoid rash decisions based on our feelings or the buzz surrounding the market. When selling, as well as buying, our strategies are very simple to use but are only valid for selling shares in your porfolio, not for selling short ZTS stock
As a golden rule, you should not keep a trade that shows a losses greater than those expected upon the buy. When to sell your stock must always be dictated by the stop-loss (automatic or manual)
In the current situation of Zoetis there is not any eligible sell setup, so Zoetis stock holders with operations in green can keep their positions
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, just one rating was published for Zoetis
|Sep 21st, 2020|
Close to ATH
A favorite tool of many traders are the moving averages, that easily show trend direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days
Technical analysts use support and resistance levels to identify price points on a chart that may act as glass ceiling, preventing the price of an asset to move up or down. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue declining until approaching another support level. On the other hand, resistance levels are where the price may find resistance as it rises. Again, this means that the price is more likely to "rebound" at this level, and if it finally ruptures this level, it will rise more easily until it hits the next resistance
The current resistance levels are:
The current support levels are:
The so-called Bollinger bands are a widespread practice that was created by John Bollinger. The Bollinger Bands are lines that run around a moving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20
The price is moving very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a bullish indicator, as price can move in these levels for many days and weeks
The Relative Strength Index is an oscillator-type indicator that gauges price action to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors
The RSI dropped below the overbought level of 70 on September 3 after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 51.67. Zoetis price collapsed a 3.63% since that level was lost
Zoetis had the earnings call and posted the 2nd-quarter report in early August. Zoetis presented second-quarter earnings of $0.89 per share on sales of $1.5 billion. The analysts estimate was $0.64 per share on revenue of $1.4 billion.
Same quarter one year ago, reported EPS was $0.90, so recently reported EPS is a drop of -1.11%. Looking at revenue, figures barely moved compared to $1.5B same quarter 12 months ago.
Zoetis will host the earnings call on early next November. Estimated earnings of %s per-share for this quarter is $0.89. If you own or you are thinking of buying Zoetis stock, you must be on your toes as earnings reporting day usually has a very high volatility, and price can gap up or down with very low liquidity and not respecting your buy/stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.