Verisign, Inc. (NASDAQ: VRSN)

VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. It offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various for all .gov, .jobs, and .edu domain names. The company also provides network intelligence and availability services that provide infrastructure assurance to organizations comprising Verisign iDefense security intelligence services, managed domain name system services, and distributed denial of protection services. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

To review VeriSign’s stock, please take a look at the 1-year chart of VRSN (VeriSign, Inc.) below with my added notations:

1-year chart of VRSN (VeriSign, Inc.)

Over the last year VRSN has experienced some wild rides, both lower in October-November, and higher ever since then. During that time, the stock formed a solid resistance at $50 (red). That resistance was a 52-week high breakout when the stock moved it in mid-September and now it should act as support if the stock were to pull back down to it. In addition, the stock has also been climbing a trendline of support (blue) since June.

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The Tale of the Tape: VRSN has a potential $50 level of support and uptrend line to watch. A long trade could be made on a pullback down to $50. A break below that level would negate the forecast for a move higher.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach