VRSN pushes through key technical resistance level
VeriSign Inc. (VRSN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
VRSN finished the month 2.34% higher at 211.68 after gaining $3.20 (1.53%) today, outperforming the S&P 500 (0.77%). Today's close at 211.68 marks the highest recorded closing price since July 9th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (VRSN as at Jul 31, 2020):
Friday's trading range has been $3.55 (1.7%), that's below the last trading month's daily average range of $4.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly 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 209.35 (now S1), which is likely to act as support going forward. The last time this happened on Monday, VRSN actually lost -1.61% on the following trading day. Prices are trading close to the key technical resistance level at 213.62 (R1).
The stock 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 accelerate should the share be able to break out to new highs for the year. As prices are trading close to July's high at 216.66, upside momentum might speed up should VeriSign mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for VeriSign. Out of 571 times, VRSN closed higher 53.94% 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 60.42% with an average market move of 0.91%.