Another stock that looks poised to trigger a breakout trade here is VeriSign (VRSN), a provider of Internet infrastructure services for the networked world. This stock is down notably over the last three months, with shares off by 9.9%.
This company just reported earnings where it met Wall Street expectations on revenues and beat expectations on earnings per share. This news could provide a catalyst that sends shares of VRSN significantly higher from current levels. Volume today has already hit 4.1 million shares, which is just below its three-month average action of 5.3 million shares, and the stock up 4.9% to $41.96.
If you look at the chart for VeriSign, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring from its low of $32.81 to its intraday high of 42.95 a share. During that uptrend, shares of VRSN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of VRSN within range of triggering a major breakout trade.Traders should now look for long-biased trades in VRSN if it manages to break out above some near-term overhead resistance at $43.55 a share with high volume. Look for a sustained move or close above $43.55 a share with volume that registers near or above its three-month average action of 5.3 million shares. If that breakout triggers soon, then VRSN will set up to re-fill some of its previous gap down zone from last October that started near $47 a share. Traders can look to buy VRSN off any weakness to anticipate that breakout and then simply use a stop that sits right below today's low of $40.63 a share. One can also buy VRSN off strength once it takes out $43.55 a share with volume and then simply use a stop that sits just below its 200-day moving average of $42.63 a share.
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