EarningsBeats.com Digest for September 3, 2021
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Trying To Evaluate Tons of Mixed Signals
Thousands of charts come and go and there are plenty that simply don't provide great bullish or bearish signals. And I tend to ignore those companies, figuring there are plenty of other trade possibilities. To illustrate, let's review Veeva Systems (VEEV). The good news is that VEEV is a software stock, and the group has been quite
bullish. Unfortunately, VEEV has been a weak relative performer in the space, trading near a 52-week relative low:
The bullish side of the argument with VEEV revolves around the huge recovery on Thursday, after a significant move lower intraday. It was a hammer that printed after a huge earnings-related gap lower. Personally, I'd watch the 310 level. So long as VEEV continues to close above 310, I'd be ok owning it. Volume was extraordinarily high on Thursday's selling, so the low should represent a very important price support level. One
bullish indicator is the AD line moving to a brand new 52-week high, while price action pulls back.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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