VRSN pushes through key technical resistance level
VeriSign Inc. (VRSN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
VRSN finished Thursday at 175.90 gaining $8.93 (5.35%), underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 172.71, the stock confirmed its breakout through the previous session high after trading up to $4.39 above it intraday.
Daily Candlestick Chart (VRSN as at Mar 26, 2020):
Thursday's trading range has been $10.20 (6.1%), that's slightly below the last trading month's daily average range of $12.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VRSN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 170.63 (now S1), which is likely to act as support going forward. After spiking up to 177.10 during the day, the market found resistance at the 20-day moving average at 176.79. After having been unable to move lower than 164.97 in the prior session, the share found buyers again around the same price level today at 166.90. The last time this happened on March 19th, VRSN actually lost -4.54% on the following trading day.
While VeriSign is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for VeriSign. Out of 591 times, VRSN closed higher 55.50% 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 61.59% with an average market move of 0.79%.