Q about VEEV

[Riskslayer]

Hi Pascal,

Thanks for posting on how you are using the breakout calculator.

I am interested in the momo stock VEEV. It came public in H2 2013 and it looks to have put in a bottom around May 2014.

How would you look at this name?

Thanks

Shawn

[Pascal]

Hi Pascal,

Thanks for posting on how you are using the breakout calculator.

I am interested in the momo stock VEEV. It came public in H2 2013 and it looks to have put in a bottom around May 2014.

How would you look at this name?

Thanks

Shawn

Good example!

VEEV for me is in an uptrend. The 50MA is trending up and above the 200MA (Not shown).
The uptrend started in May (130 days ago). This is what we need to use.



We are just above the 50MA. We can see below that buying a pull-back to the 50MA, with a stop below the envelope is not a good idea. Results are all in Blue: neutral.



However, we can see that VEEV used to react well to breakouts.



Hence, testing a normal breakout or a breakout on volume leads to positive results.



My conclusion is that this stock must simply be bought on a breakout-on-volume above the Pink trend line ($29.5) with a 5% stop.

By the way, if you use 15 days instead of 5 days as holding period, the trade stats still look good




Pascal

[Riskslayer]

Hi-

Great explanation!

Have a good weekend,

Shawn