Meanwhile, there are some worthwhile upside trades setting up right now as well. The first comes from internet authentication servicer Verisign (VRSN - Get Report), which is showing traders an ascending triangle setup right now. Shares will need to break above $37.50 resistance before this stock becomes buyable.
An ascending triangle setup is a formation that's characterized by a horizontal upside resistance level, and uptrending support below. As shares get squeezed toward that glut of supply at the stock's resistance level, the chances for a breakout above the price barrier become significantly greater. The trade signal occurs on that move above the resistance level -- not before.
With a secondary support level at the 50-day moving average, risk is seriously mitigated in shares of Verisign. April 28 earnings could be a strong catalyst for the move higher, although price action near the apex of the triangle could spur a breakout earlier than that.One big bet on Verisign comes from Renaissance Technologies, which owns 3.3 million shares of the stock as of the most recently reported period.