Back in mid February shares of Zoetis (NYSE:ZTS) appeared ready to reach new all time highs. The failed Feb. 16 earnings inspired breakout lead to a steep pullback. By early March the stock had dropped 17% from the Feb. highs and had retraced 1/3 of the entire rally off the March 2020 lows. Since the Mar. 5 low ZTS has been steadily rebounding but was having trouble with resistance near the 200D moving average. As the new week begins the stock is putting some distance on the 200D as it moves past the March peak.
Solid support is now in place near the $160-$161 area. This key zones marks the multi week March highs as well as last week’s high.
ZTS is far from overbought and is setting up, once again for a retest of the all time highs set back in November.
On the downside, a close back below $155.00 would violate last week’s low sending a clear warning sign that more sideways action is ahead.
We are long ZTS in some managed accounts.