This recent IPO is starting a new uptrend. Let’s look at Veeva Systems (VEEV) (November 07, 2014)
I want to look at Veeva (NYSE:VEEV ) here. This is an IBD 50 stock, which I look at those at least once a week; I want to see what the high momentum stocks are doing. Veeva (NYSE:VEEV ) is here, the reason I’m mentioning this is this doesn’t take much of an analysis, the stock’s in an uptrend. Look at the 50-day moving average, it hasn’t been trading that long, the 200-day moving average is going to be drifting down even though the stock’s drifting up, it’s a math thing because the stock fell so much way back here and all these day count.
Gradually this stock looks like it’s starting to really make a pretty nice uptrend here. I think you’ve got to look at Thursday’s intraday low, use that as your reference for stops, maybe you could put it a little bit lower, maybe you just say the heck with it, I’m not going to use a stop at all, just As long as the stock stays above this level here then it’s still printing a higher low, which is actually true. The point is I just want to draw your attention to this because it’s had about a four-day pullback and then a bounce on Friday, about 2.5 percent, which wasn’t too shabby.
Volume, light here, it’s been light for a while; watch this, if I change this moving average from 50-days down to 20-days watch what happens, all of the sudden it gets a little bit closer to average volume here. So if you look over the last month or so the volume is the up volume; the green bars have been trending higher here. We got a little bit of a light day on Friday, if you look at the weekly chart though you can see how this downtrend has resolved into an uptrend, or at least a sideways consolidation.
I would just say you want to be patient with this stock, I think you can buy it now. What would really be nice, if the stock is listening got me, I would really appreciate it if you could do this, pull back a bit more to the lower part of the channel, maybe about $27.00 or so, that would be a better entry. What’s your take away from this video, because I’ve been giving a lot of opposing analysis; if this then that, but if this then that.
I think your take away should be this, the stock’s trending higher, if you’re looking for a stock to trade this is not your stock; most days are very, very tight range. But if you’re looking for a stock to own, this stock, since it’s debut, got cut in half big time, literally cut in half and now it’s starting to drift higher. So this is a stock I think you can own and own it with some confidence.
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