Veeva Systems (VEEV) is a cloud software provider for the life sciences industry and it's are set to report quarterly numbers after the close of trading Wednesday. The charts look particularly weak unfortunately.
We have not inspected the charts since Dec. 18, 2020, and we had our concerns about the price strength back then.
In this daily bar chart of VEEV, below, we can see that prices have had a number of up and down swings the past 12 months. Currently prices are pointed lower and trade below the 50-day and 200-day moving averages. The daily On-Balance-Volume (OBV) line has moved sideways since early August. The Moving Average Convergence Divergence (MACD) oscillator is bearish since it is below the zero-line.
In this weekly Japanese candlestick chart of VEEV, below, we see a bearish picture. Prices are trading below the 40-week moving average line. The weekly OBV line has lost ground the past four months and the MACD oscillator is bearish and shows a bearish divergence in August as it made a lower high when prices made a higher high.
In this daily Point and Figure chart of VEEV, below, we can see a downside price target in the $241 area.
In this weekly Point and Figure chart of VEEV, below, we see a downside price objective in the $217 area.
Bottom line strategy: With the weakness in the broader market and bearish looking charts on VEEV, traders should avoid the long side of VEEV ahead of earnings
