Stock Chart VRSN

Posted by downtowntrader | 5/27/2009 06:53:00 PM View Comments

Stock Chart Analysis VRSN

Verisign, Inc.(Public, NASDAQ:VRSN)

Despite the fact that the almost everyone I know believes we are headed to new lows at some point, I continue to see tradeable bottoms forming. Many stocks that dropped precipitously last year, have been trading sideways for several months and are starting to break above these bases. In fact, I am seeing a lot of these patterns develop recently. Whether this will lead to an extension of the existing rally or not remains to be seen, but many of these patterns are worth paying attention to. VRSN is an example of one of these patterns.

VRSN has been building a base for the last 6 months after topping out in mid 2008. It broke out of that base in late April and has been trading in a bull flag for the past couple of weeks. This is about the average time it takes for a bull flag to develop, so I expect it to move soon. It has been using the 200-day moving average as support and slow stochastics is starting to cross over. Also notice that the MACD histogram hit a new high on the last move, which often precedes an extended move higher. While we undoubtedly remain in a primary bear market, many charts still look quite bullish and could offer great opportunities for trades.

Good Trading,


blog comments powered by Disqus