VeriFone Systems, Inc. designs, markets, and services electronic payment solutions at the point of sale (POS) 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.
Take a look at the 1-year chart of Verifone (NYSE: PAY) below with added notations:
PAY had rallied nicely to start the year. After running up to the $38 area in June, the stock pulled back a bit into August. The stock followed that pullback with another run up to $38, and again pulled back, but this time even further. The stock has now tested the $38 level again (red), and may be looking to finally break thru that resistance. That break would also constitute a new 52-week high.
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The Tale of the Tape: PAY has a 52-week resistance at $38. The possible long position for the stock would be on a breakout above $38.
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
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