Here’s your measured move on Veeva ($VEEV) (September 12, 2018)


I want to look at Veeva ( NYSE: VEEV ) today and the reason is this: The next earnings are 12/4/2018, so that’s not an issue, that’s out of the way. The stock has already made a heck of a move here; a breakout from $85.00, and ran clear up to 105.00, that’s 20 points,19, whatever it is; I’m saying 85.00-105.00, that’s 20 points on the Fitzpatrick calculator. The move was just about parabolic and then over the last couple weeks the stock has just been trading sideways.

I’m looking at a flag pattern here. What I would have liked to have seen is the stock just consolidate maybe here and then boom, a breakout to the upside. It hasn’t done that, instead, it has just kind of been frittering around here in a 5-point range. I think your entry here is a breakout and a close above $105.00 on volume that is heavier than average; this is just a 20-day moving average of volume so that is like 1.4 million.

What we would want to see is the stock break out and close above $105.00, on greater than average volume. And then this is what I am looking for: I am looking for another $20.00, so that is $125.00; that would be my price target on here. I don’t think you want to even try to anticipate it and buy a little bit now; simply because it is at 104.61 and so you are only giving up 39 cents of profit by just simply waiting to see whether it breaks out above $105.00. That would be my trade on this. Also, you are going to need to keep your stop back below last Wednesday’s intraday low of 98.32, we’ll make it 98.25 or so; that’s just a capital preservation thing, that’s what you should be doing.

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