VRSN enters Golden Cross for the first time since March 23rd
VeriSign Inc. (VRSN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VRSN finished the week -1.62% lower at 213.72 after gaining $2.66 (1.26%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VRSN as at May 22, 2020):
Friday's trading range has been $4.84 (2.3%), that's slightly below the last trading month's daily average range of $5.25. 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.
Two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, VRSN actually lost -2.20% on the following trading day.
VeriSign managed to close back above the 20-day moving average at 212.01. Prices are trading close to the key technical resistance level at 216.66 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since March 23rd. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Buying might speed up should prices move above the close-by swing high at 216.66 where further buy stops could get activated. 2019's high at 221.78 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for VeriSign. Out of 780 times, VRSN closed higher 56.41% 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 63.72% with an average market move of 1.12%.