Veeva Systems: Another Software Stock Tries to MoveOne software stock after another has come to life and ripped higher in the last few months. Salesforce.com , Alteryx , ServiceNow , Trade Desk , Adobe : the list goes on.
VEEV is another member of the group that's now trying to make its move. It's formed a broad basing pattern since last autumn. That followed a 100 percent move between early 2018 and mid-2018… which followed a 200 percent move in the two years before that.
VEEV is a "classic growth stock," going from small-cap to mid-cap to large-cap as its business expands. Growth stocks like this have been the cornerstone of the rally for years, and there's little sign of that changing.
VEEV is now trying to get back above its 200-day simple moving average (SMA). It resembles Amazon.com earlier this month and PayPal in December.
VEEV also just bounced at the same $148.50 zone that was previously resistance. Traders might expect a few more sessions of consolidation but also watch for continuation higher -- especially with earnings due in 3-4 weeks.
Speaking of earnings, VEEV has a history of surprising to the upside. Last quarter, it tried to rally before getting smacked lower. But now it's had time to consolidate and turn its 100-day SMA higher. Notice it's given useful signals in the past. (This chart below uses our Colored Moving Averages script to highlight direction of the 100-day SMA. In the dynamic chart above the 100-day SMA is gray.)
