Cloud software provider Veeva Systems (VEEV) has made some rally attempts this past year but so far they have failed. The shares are retreating from a test of the declining 200-day moving average line so let's check and see if we should be a buyer of weakness or a seller of strength.
In the daily bar chart of VEEV, below, we can see a bearish picture. Prices rallied in November but failed to sustain gains above the declining 200-day moving average line. Prices are retreating and testing the 50-day moving average line.
Trading volume has increased recently on the current pullback and that is a negative as traders are voting with their feet. The daily On-Balance-Volume (OBV) line shows only a slim advance and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In the weekly Japanese candlestick chart of VEEV, below, we can see a couple of upper shadows on the candles in November. The shares found chart resistance around the declining 40-week moving average line.
The weekly OBV line remains weak. The MACD oscillator made a higher low in October but the improvement in this indicator may be over as the two moving averages are narrowing.
In this daily Point and Figure chart of VEEV, below, we can see that the shares are pointed down with a $149 price target.
In this weekly Point and Figure chart of VEEV, below, we can see the same price target as the daily chart -- $149.
Bottom-line strategy: Traders and investors should avoid the long side of VEEV. Prices are likely to retest the lows of the year and we cannot rule out new lows.
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