Are you in on this squeeze in Veeva Systems (VEEV)? (March 15, 2017)
In this video I want to look at Veeva ( NYSE:VEEV ). This is a software company; sales and marketing software for companies in the healthcare industry. This chart is a thing of beauty. If you look here it looks almost like a blow-off and then you are getting a sideways squeeze here. I have been following this and owning this stock for a while. If you are looking at a volatility squeeze, this here, this big, huge volatile day could have got you into the stock. But then finally when the stock closes above 45.00, that is kind of a low-risk buy point. Because you are buying the stock here and you can set a stop. Even if you go below the 50-day moving average you are still 4 maybe 5 percent.
You can set a fairly tight stop up here and then the stock continues to move higher. You zoom out and look at where it has come from and this is a buying opportunity; another one on Monday. Then you get a little pullback yesterday, but this didn’t really amount to much. This is an inside day where the intraday high and the intraday low were completely engulfed by the prior days intraday high and low, so this is kind of an indecision. And after this kind of noticeable breakout, which by the way, wasn’t that high in magnitude, in other words it move a couple dollars. But this little inside day tells you that there is not a lot of selling pressure. And then now, Boom! We get a lot of buying pressure here.
Now, this was the all-time intraday high, we will call it $48.00, so this is knocking at the door. You zoom out and look at the weekly chart. It has been trading a couple of years, the all-time high is $49.00, so this is close to an all-time high. I will tell you this: Once this stock starts trading above $50.00 this could really take off. I am not really pounding the table on Veeva ( NYSE:VEEV ), I am just bringing it to you attention. They have got a real high growth rate in earnings and in sales. This is the kind of stock that institutions want to own. The float, 100 million shares so it is not exactly hard to buy. I think you are ultimately going to see this stock break through $50.00. I want you to be there, so go ahead and start building a position if you don’t already.