Pattern play: Veeva Systems

Bullish breakout from a descending wedge pattern.

Charts (6)

Veeva Systems (VEEV), a supplier of vertical software solutions, broke out to the upside of an intermediate-term falling wedge pattern that began to form in late-October. The RSI is just above 50. The simple moving averages (SMAs) are arranged in a mixed to bullish manner, with the 50-day SMA above the 20-day SMA and the 20-day SMA above the 200-day SMA. If the 20-day SMA crosses to the upside of the 50-day SMA, it would be a bullish signal. If price can manage to hold above the upper trendline of the falling wedge pattern then price will likely advance towards 295.00. If price can get above 295.00 it would probably try to retest the record high of 314.00. If price can break through 314.00, it could potentially continue to run. On the other hand, if price falls below the upper trendline of the pattern, then traders should look to 257.00 for support. If price fails to hold at 257.00, it would be a bearish signal that could hint at a drop back to 240.00. 



Source: GAIN Capital, TradingView

More from Technical Analysis

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.