VeriFone Systems, Inc. designs, markets, and services electronic payment solutions at the point of sale worldwide. It provides countertop electronic payment systems that accept card payment options, such as NFC, mobile wallets, chip and PIN, and contactless payments, as well as support credit and debit card, EBT, EMV, and other PIN-based transactions; an array of software applications and application libraries; and portable solutions that support 3G, GPRS, Bluetooth, and WiFi technologies. The company also offers multimedia consumer facing POS devices; unattended and self-service payment solutions designed to enable payment transactions in self-service environments; and integrated electronic payment systems that combine electronic payment processing, fuel dispensing, and ECR functions, as well as payment systems for integration.
To review Verfone’s stock, please take a look at the 1-year chart of PAY (VeriFone Systems, Inc.) below with my added notations:
PAY has been trending higher all year and since February the stock has been climbing a trendline of support (blue). Over the last 2 months though, the stock has formed at 52-week high resistance at $35 (red). At some point PAY will have to break one of those two levels.
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The Tale of the Tape: PAY has a $35 resistance and an uptrend line of support to watch. A long trade could be made on either a pullback down to the trendline, which currently sits near $32, or on a break through the $35 resistance. A break below the trendline support should lead to lower prices.
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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach