Veeva Systems (VEEV) Just Overtook the 20-Day Moving Average

After reaching an important support level, Veeva Systems (VEEV) could be a good stock pick from a technical perspective. VEEV surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Over the past four weeks, VEEV has gained 18.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

The bullish case solidifies once investors consider VEEV's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 11 higher, while the consensus estimate has increased too.

Investors should think about putting VEEV on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

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This article originally published on Zacks Investment Research (zacks.com).

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