Veeva's Rally Could Be A Bull Trap - A Prolonged Consolidation Looms

Veeva Systems VEEV is currently in its 17th Phase of the 18-phase Adhishthana Cycle, and despite what may appear as bullish structure on the weekly charts, the best move for investors right now is to stay away. Here’s why.

Veev's Alignment So Far

Veev has shown strong historical alignment with Adhishthana Principles, our cyclical framework that integrates quantitative signals and proprietary behavioral archetypes. Some of the most notable phases include:

Phase 9: The Supreme Move

In line with the principle that Phase 9 represents the “Supreme Move”, Veev broke out of the Adhishthana Cakra formed between Phases 4 and 8, and rallied by a massive ~108%. This breakout rally also initiated the ascent of the Adhishthana Himalayan formation.

Phases 10 & 11: Completion of the Himalayan Formation

Following the strong rally, Veev peaked in Phase 10, reaching an all-time high of $343.9, which perfectly matched the principles’ call for a Himalayan peak in this phase. The descent began in Phase 11, again aligning with expectations, with the stock falling ~56%, retracing back to the origin point of its Phase 9 ascent.

Where We Are Now: Phase 17

Veev is currently in Phase 17, classified in Adhishthana as a No-Action Phase. While rallies may occur during this phase, they are not meant to be chased.

The stock will enter Phase 18 on 15 Sep 2025, often considered the phase where a stock can reach Nirvana – its highest point in the 18-phase cycle. But here's the key problem: for a stock to reach Nirvana, the Guna Triads (Phases 14, 15, and 16) must exhibit Satoguna, or clean bullish energy.

In Veev's case, the Triads lacked Satoguna entirely, suggesting that the structure required to achieve Nirvana is missing. As a result, the stock is not expected to make a new all-time high in Phase 18, defying the typical pattern seen in successful cycles.

Monthly Chart Adds More Caution

Veev's monthly chart further validates the no-buy stance. The stock is in Phase 3, set to conclude on 31 Mar 2027. It will then enter Phase 4, another "No-Action" phase, lasting till 30 Sep 2030. That's a multi-year consolidation ahead.

In essence, both weekly and monthly timeframes point to the same conclusion: avoid chasing the current rally.

Investor Takeaway

The rally in Veev during Phase 17 is not sustainable within the Adhishthana framework. With no Satoguna in the Guna Triads and a lengthy no-action period ahead on the monthly chart, the likelihood of significant upside is low.

• Current Longs: Consider trimming or hedging.
  
• New Entries: Best postponed until a valid bullish structure re-emerges- likely years away.
  

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