New Price Target for Veeva Systems Emerges After Earnings Guidance
A new price target has emerged for the cloud solutions provider but should traders dive in?
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Cloud solutions provider Veeva Systems VEEV reported a non-GAAP EPS of $1.62 beat of $0.09 Wednesday night and a revenue of $676.2 million, which beat estimates by $8.36 million. Traders on Thursday seem to focused on the company giving above-consensus guidance.
Let's check out the charts and indicators.
In this daily bar chart of VEEV below, I can see that prices gapped higher on Thursday and are now trading in the middle of their high/low range so far today. Prices are above the bottoming 200-day moving average line and above the rising 50-day moving average line. The trading volume on Thursday, so far, is just OK and not as active as I would like to see. The daily On-Balance-Volume (OBV) line has been dull/neutral the past three months. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of VEEV below, I see a mixed picture. On the one hand, the chart picture looks like a base pattern but the indicators are not giving me confirmation. Prices are now trading above the 40-week moving average line but remain below the March zenith. The OBV line shows me a slow but rising pattern the past two years. The MACD oscillator is below the zero line but trying to generate a cover-shorts buy signal.
In this daily Point and Figure chart of VEEV below, I can see that the software is projecting an upside price target in the $317 area. A trade at $240 or higher is needed to refresh the uptrend.
In this weekly Point and Figure chart of VEEV below, I can see more price history, but the software still gives us a price target of $317, like the daily chart above.
Bottom line strategy: Because VEEV is not seeing strong volume and is trading in the middle of its range on Thursday, we could see either VEEV fill this price gap or we could see prices move sideways before another attempt at the upside. Traders should keep their powder dry for a few days to see how the jiggles will play out.
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