Verisign (VRSN) - Get Report finished last week with a powerful breakout move. On Friday, the stock gained over 2.8% on its heaviest upside trade since February. This earnings-inspired surge drove Verisign through a major overhead trend line, leaving behind a very solid base in the process.

In the near term, investors should take a more positive view of the stock. It is now set up well for more upside.

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After reaching its March high just above $90, following an impressive 28% rally from the February low, Verisign fell into consolidation mode. The stock made a slightly higher high in April, but it was clear that the upside momentum had been completely worked off. In May, shares drifted below key support near $88 but remained in a tight range.

This narrow action continued into June, and despite the Brexit panic selling wave, Verisign saw little damage. The stock managed to hold near its upward sloping 200-day and was quickly back inside its consolidation pattern. During the two weeks prior to last Thursday's report, the range contracted even further. Verisign was setting up for a big post-earnings move.

Last Friday's big move has left behind a very solid support zone. This area runs from $85 to $83. In the near term, patient Verisign bulls should view a dip down to this area as a low-risk entry opportunity. A close back below the $82 level would violate last week's low and put the stock back in consolidation mode. On the upside, a key hurdle will be the June high near $87.80. Once this level is convincingly taken out, Verisign will have a clear path up to major resistance near the 2015/2016 highs between $94 and $92.

Considering the stock has along way to travel before re-entering overbought territory and has a sky-high short interest ratio, a rally up to the 2015 highs may be only a portion of a new rally leg.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author had no positions in stocks mentioned.