VEEV closes below its opening price unable to hold early session gains
Veeva Systems Inc. Class A (VEEV) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VEEV ended the week -1.95% lower at 145.19 after losing $0.38 (-0.26%) today, but still outperforming the S&P 500 (-0.9%). Trading $2.90 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VEEV as at Jan 24, 2020):
Friday's trading range has been $4.85 (3.3%), that's far above the last trading month's daily average range of $2.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VEEV.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
After spiking up to 149.90 during the day, the share found resistance at the 100-day moving average at 147.25. The last time this happened on November 20, 2019, VEEV lost -2.38% on the following trading day. The market found buyers again today around 145.05 for the third trading day in a row after having found demand at 144.77 in the previous session and at 144.90 two days ago.
Veeva Systems shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 144.77 where further sell stops might get triggered. With prices trading close to this year's high at 150.33, upside momentum could accelerate should VEEV be able to break out to new highs for the year. With prices trading close to this year's low at 138.95, downside momentum might speed up should the stock break out to new lows for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for Veeva Systems. Out of 14 times, VEEV closed lower 64.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 71.43% with an average market move of -3.01%.