For his final "Executive Decision" segment of Thursday's Mad Money program, Jim Cramer checked in Peter Gassner, CEO of Veeva Systems (VEEV) , the cloud software provider for the life sciences industry.
Gassner said Veeva is proud to contribute to the 30 vaccines currently in development. His company's software is helping to develop, test, manufacture and distribute these critical drugs. The company has "digitized a lot of things," and has only scratched the surface.
Cybersecurity remains a focus at Veeva, Gassner said. We have to assume everyone is always trying to gain access to these new drugs so they can call them their own. Security remains paramount. Gassner added that Veeva is helping to make better and more efficient healthcare using new technologies.
We looked at the charts of VEEV early this month and wrote that "VEEV looks like it will continue to trade sideways, but increased volume on down days and a close below $255 could turn things bearish. Avoid the long side for now."
Let's see how the charts changed over the past couple of weeks.
In the daily bar chart of VEEV, below, we can see that the shares dipped to $255 but have not closed below that chart point. VEEV has recently rallied to the underside of the declining 50-day moving average line. The 200-day moving average line is rising and intersects just below $240.
The trading volume has been fairly active the past six weeks and the On-Balance-Volume (OBV) line has declined this month. The Moving Average Convergence Divergence (MACD) oscillator is showing us a cover shorts buy signal but no outright go long message.
In the weekly bar chart of VEEV, below, we can see a longer-term uptrend that may need some further sideways consolidation. The shares are trading above the rising 40-week moving average line.
The weekly OBV line has been stalled in recent months suggesting that aggressive buying is taking a break. The MACD oscillator crossed to the downside in October for a take profits signal.
In this daily Point and Figure chart of VEEV, below, we can see a potential price target of around $324. We also see that a decline below $255 could weaken the picture.
Bottom-line strategy: No change in strategy just yet. VEEV could trade sideways a bit longer and the risk of a break below $255 is still present.
