VRSN fails to close above 20-day moving average
VeriSign Inc. (VRSN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VRSN ended the week 2.19% higher at 209.57 after losing $0.24 (-0.11%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.34 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VRSN as at Feb 14, 2020):
Friday's trading range has been $2.63 (1.25%), that's below the last trading month's daily average range of $3.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VRSN.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 208.06 (S1). After spiking up to 211.34 during the day, the share found resistance at the 20-day moving average at 211.15. After having been unable to move above 210.77 in the previous session, VeriSign ran into sellers again around the same price level today, missing to move higher than 211.34. The last time this happened on Tuesday, VRSN actually gained 1.87% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for VeriSign. Out of 209 times, VRSN closed higher 63.16% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.64% with an average market move of 1.13%.