During Wednesday night's 'Lightning Round' segment of Mad Money, one caller asked about Veeva Systems (VEEV) : "I'd buy it right here..." was Jim Cramer's comment.
In this daily bar chart of VEEV, below, we can see that prices have found a lot of buying support around the $140 level. Dips and tests of the $140 level have been bought since early September. Prices are now testing the declining 50-day moving average line and also sit below the cresting 200-day moving average line.
The On-Balance-Volume (OBV) line shows a minor peak in late November and then a flat trend into the new year. I would like to see increased volume and a turn higher for the OBV line to convince me that VEEV was ready to move up.
The Moving Average Convergence Divergence (MACD) oscillator is curving upwards for a cover shorts buy signal. Crossing the zero line would be an outright go long signal.
In this weekly bar chart of VEEV, below, we can see that prices have more than tripled in the past three years. VEEV is currently below the cresting 40-week moving average line. A rally above the $51 area should put VEEV above the moving average line.
The weekly OBV line has been in a decline since July and signals that sellers of VEEV have been more aggressive.
The MACD oscillator is slipping below the zero line but the two moving averages that make up this indicator are narrowing so a new buy signal could be seen in the weeks ahead.
In this daily Point and Figure chart of VEEV, below, we can see a modest upside price target of around $157. Strength above $171 or $172 is needed for a more important upside move.
Bottom line strategy: Should VEEV be bought here? It looks like VEEV can rally so a new long position with a stop below $137 looks okay.
