Veeva Systems ( VEEV) is a cloud-based software company for the global life sciences industry and is due to report its latest earning's numbers Tuesday. Let's check out the charts and indicators ahead of the fundamentals.
In this daily bar chart of VEEV, below, we can see that the stock price of VEEV doubled this year and it has been correcting those gains the past three months. Prices have traded sideways in roughly a $155-$175 range.
Prices have slipped below the cresting 50-day moving average line and the On-Balance-Volume (OBV) line has turned slightly lower the past five to six weeks. The Moving Average Convergence Divergence (MACD) oscillator has narrowed and is close to a cover shorts buy signal.
In this weekly bar chart of VEEV, below, we can see that prices have outperformed the broad market with its four-fold rise the past three years. Prices got extended above the rising 40-week moving average line in June and July and now we are seeing a correction. The weekly OBV line is now pointed down and the MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of VEEV, below, we can see a modest nearby price target of $176, which is not a new high for the move up. A decline to $153.96 will likely weaken this chart.
Bottom line strategy: Even the strongest stocks need a correction now and then and it looks like VEEV will continue to correct for several more weeks. An opportunity may come to buyers at a lower entry level in the weeks ahead. Be patient.
