VRSN pops to highest close since June 10th
VeriSign Inc. (VRSN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, VRSN finished Thursday at 210.81 gaining $0.33 (0.16%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 210.81 marks the highest recorded closing price since June 10th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VRSN as at Jul 02, 2020):
Thursday's trading range has been $4.30 (2.05%), that's below the last trading month's daily average range of $5.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VRSN.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on March 25th, VRSN actually gained 5.35% on the following trading day.
The market managed to close above the 50-day moving average at 210.56 for the first time since June 10th.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 221.30, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for VeriSign. Out of 68 times, VRSN closed higher 51.47% 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 64.71% with an average market move of 0.93%.