Veeva Systems Jumps 3.61% As Technicals Signal Bullish Reversal

Veeva Systems (VEEV) rose 3.61% in the latest session, marking its second consecutive day of gains with a total advance of 4.71%. This momentum warrants a technical evaluation using multiple frameworks.
Candlestick Theory
Recent price action shows VEEV forming a bullish reversal pattern, with a hammer candle on September 4th ($262.85 low) preceding a 3.61% surge to $282.78. This rebound aligns with strong support near $263-$265, validated by repeated bounces from this zone in late August. Resistance emerges at the July peak of $296.72, reinforced by the August 28th high of $286.69. The current uptick suggests accumulation, though sustainability requires confirmation above $285. A bearish engulfing pattern on August 28th (-7.24%) indicates residual overhead supply.
Moving Average Theory
The 50-day MA ($276.50) recently crossed above the 100-day MA ($271.80), signaling strengthening intermediate momentum. Both remain below the rising 200-day MA ($254), reflecting longer-term bullish bias. Price reclaimed all three MAs after the August 28th sell-off, but the 50-day faces proximity resistance near $283. Confluence support exists at the 100/200-day MAs ($271-$267), where reversals occurred in June and August.
MACD & KDJ Indicators
MACD histogram turned positive in early September, confirming upward momentum as the signal line crossed above zero. This aligns with KDJ exiting oversold territory (sub-30 reading on August 28th) and rising toward overbought thresholds. While KDJ's J-line approaches 80, suggesting near-term overheating risk, MACD's bullish crossover supports continuation if the histogram expands.
Bollinger Bands
Volatility contracted significantly after the August 28th wide-range plunge (bands expanded to 14% width), with September's price consolidation tightening bands to 7% width. The current close near the upper band ($283) indicates bullish momentum, though reversion risks increase if price detaches from the band. Support resides at the middle band ($274), which acted as resistance in early September.
Volume-Price Relationship
The rally lacks robust volume confirmation: September 8th's 3.61% gain occurred on 2.25M shares, below the 3M+ average during major sell-offs (e.g., August 28th's 4.46M shares). However, accumulation is evident in the September 4th rebound from $262.85, where volume spiked 30% above the 10-day average. This divergence suggests cautious participation in the uptrend.
Relative Strength Index (RSI)
RSI(14) climbed to 58, exiting neutral territory but remaining below overbought thresholds. The indicator bottomed at 28 during August's sell-off, aligning with historical oversold reversals. Current levels allow room for upside, though proximity to 60 warrants monitoring for bearish divergences.
Fibonacci Retracement
Tracing the swing high of $296.72 (July 29th) to the August 28th low of $264.33, key retracements emerge: the 38.2% level ($276.60) was breached decisively last week, while the 50% level ($280.52) now acts as support. The 61.8% resistance at $284.30 aligns with the September 8th close, and a sustained break above this level may target the 78.6% retracement at $289.85.
Confluence and Divergences
Confluence exists between Fibonacci resistance ($284.30), Bollinger Band resistance ($283), and the July swing high, creating a critical resistance cluster. Divergences appear between price momentum (bullish MACD crossover) and volume (lackluster participation). The successful defense of the 100/200-day MA confluence ($267-$271) and the hammer reversal pattern enhance bullish probabilities near-term, but volume validation and a close above $285 are needed to confirm trend resumption. Failure to hold $280 may trigger retesting of the $265 support zone.