Our Veeva (VEEV) continues to work. Here are some ideas for trading vs. investing in this high growth stock. (March 16, 2017)
VEEV
Lets look at Veeva ( NYSE:VEEV ) again. I posted a Free Chart video last night and I think I have talked about this in this Free Chart forum before. I think this stock even moves higher from here. We have been looking at this for a while, you could see, it wasn’t really a blow off per se, but the stock peaked here and fell back down and then started trading sideways for months. This formed a nice high base along the 50-day moving average, that is the red line, the 100-day moving average is just below that. You are sitting here, nice time to be building a position if you are interested in owning the stock because the fundamentals are great, and they are; software in the life sciences industry, high growth, great possibilities. I love this company as a long-term hold but lets look at entering it first.
So we are waiting here and then, Boom! That is really the first buy signal. You could have got it on this volatile day but lets not talk about woulda, coulda, shoulda. The stock breaks out at $45.00. It is kind of a similar way that Alibaba ( NYSE:BABA ) broke above $105.00. The difference is, Alibaba ( NYSE:BABA ) kind of pulled back a bit, this one kept going. Now look at the volume here: As the stock moved higher, and these are all open boxes, like 6 or7 in a row here; where every day the stock closed higher than it opened, hence buying activity on heavier than average volume, so volume is just increasing.
Your first buy point is here, and then that is the top, stock pulls back. The second is really right here, this buy point here, this was on Wednesday. And then finally, Boom! Today is the next one. Now the stock came up almost to $50.00. I don’t know if this is going to continue moving. By this point you shouldn’t be buying. You should already be in the stock. And then your question is, do you want to sell? My question to you would be, what is your time frame?
For me I am looking at it this way: I may trade around this position a little bit, but I have various other stocks that I am looking at. I am more interested in owning this stock when it is up at 80.00 or $90.00 than I am selling it before it falls to $48.00. From a long-term perspective the stock has been trading a couple years, right? Three years, 3.5 years (my how time flies), it is close to an all-time high. Once it moves up here above 50.00ish everybody’s a winner. That is what you want to be owning.
I think this stock ultimately moves higher. If you are a trading guy then maybe look to take some profits tomorrow if the stock pulls back. But look at this, the stock has been performing like this, an 8 or 9 percent breakout isn’t that big of a deal. It is not the type of thing where traders are going to say, “Oh my gosh! I can’t believe how much money I have made in the last few days. I have to take profits.” I don’t think there is a big risk of that happening. I think that what you really need to focus on is that these big green bars indicate institutional buying. That is where you want to be. They have to buy over a longer period of time. You can buy in a day or two days or three days because you are scaling in. And then let the institutional buying do the work for you, just ride the stock higher.
Free Chart