VEEV climbs to highest close since November 26, 2019
Veeva Systems Inc. Class A (VEEV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VEEV ended the week 4.74% higher at 158.82 after surging $4.87 (3.16%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 158.82 marks the highest recorded closing price since November 26, 2019. Closing above Thursday's high at 155.97, Veeva Systems confirmed its breakout through the previous session high after trading up to $3.80 above it intraday.
Daily Candlestick Chart (VEEV as at Feb 14, 2020):
Friday's trading range has been $4.47 (2.87%), that's above the last trading month's daily average range of $3.67. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VEEV.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 156.28 (now S1), which is likely to act as support going forward. The last time this happened on January 30th, VEEV actually lost -2.42% on the following trading day.
Crossing above the upper Bollinger Band for the first time since February 4th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 149.60 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Veeva Systems. Out of 63 times, VEEV closed lower 65.08% 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 five trading days, showing a win rate of 50.79% with an average market move of -0.47%.