Veeva Systems Inc. (VEEV) recently broke out to a new high and prices could surprise traders and investors on the upside in the weeks ahead. Let's check out the latest charts and indicators to see what strategy makes sense the next several weeks on this stock discussed by Jim Cramer Monday night on Mad Money.
In the daily bar chart of VEEV, below, we can see that VEEV consolidated its first-half 2018 gains in a modest correction in October-December. When the broad market skidded lower in November and December VEEV held steady. In late December VEEV quickly caught a bid and rallied about $35 in the blink of the eye. Prices were below the 50-day and 200-day moving averages in December and now VEEV is well above the rising 50-day and 200-da lines.
The level of trading volume looks about "average" in January but the daily On-Balance-Volume (OBV) line has moved up to a new high, besting the early October peak and telling us that buyers of VEEV have been more aggressive. The Moving Average Convergence Divergence (MACD) has been strong and pointed higher.
In the weekly bar chart, below, we can see that the price of VEEV is up more than five-fold over the past three years. The rising 40-week moving average line has done a great job in identifying and tracking the bull move and buying opportunities as the line gets tested. VEEV is above the rising 40-week line.
The weekly OBV line broke out to a new high in the past month to confirm and support the price gains. The weekly MACD oscillator has crossed to the upside from above the zero line for an outright buy signal.
In this Point and Figure chart of VEEV, below, we can see the breakout trade at $109.77 and the longer-term price projection of $147.
Bottom-line strategy: Looking to add to your long position in VEEV? You may get a dip toward $110 but that is all the softness I would look for as VEEV has rallied non-stop. Risk below $105 while looking for gains to the upper $140s.