NEW YORK (TheStreet) -- VeriFone (PAY) , the provider of point-of-sale devices for almost every type of debit and credit card transaction, has had an extremely volatile ride since the crash of 2008. At that point, the stock became an "option on survival," trading as low as $2.31 per share in November 2008.
Survive it did. Here's how to trade VeriFone based on technical analysis, including its negative chart divergences.
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Here's the daily chart for VeriFone.
Courtesy of MetaStock Xenith
The daily chart for VeriFone shows the rebound from the June 2013 low at $15.34 to the June 2014 high at $38.26 and the volatility since then. The stock has been below its 200-day simple moving average (green line) at $34.43 since Friday which is a technical warning in front of the earnings rew2port released after the closing bell on Monday.
From 2008, VeriFone shares surged 25-fold to an all-time intraday high at $58.88 into April 2011. The stock shifted from survival mode and became a popular momentum stock as the global economic recovery increased demand for payment devices from financial institutions, payment processors, retailers, government entities and health care providers.
The stock then lost its momentum status and experienced an extremely volatile ride, trading as low as $15.34 into June 2013. Problems that caused this decline began on Feb. 21, 2013, when the stock plunged 43% in one day after the company warned that global sales would be much lower than expected. The decline to the low accelerated after the company missed second-quarter 2013 earnings, reported on June 5, 2013.
From the January 2013 high at $36.13 to the June 2013 low at $15.34, the plunge was 58%.
Moving into 2014, shares of VeriFone rebounded 149% from the June 2013 low to as high as $38.26 on June 17, 2014. Since then, the stock declined 26% to as low as $28.18 into Oct. 15, then rebounded of 34% to as high as $37.84 into Nov. 5.
This is the volatility background investors must navigate this week after VeriFone reports quarter results after the closing bell on Monday. Guidance will be a key both for the company and strength of the global economy.