Stock to Sell #6 – VeriSign (VRSN)
VeriSign (NASDAQ:VRSN) is a leading provider of Internet domain name registration. Analysts are concerned about greater government oversight and unexpected weakness in its core business.
The stock has fallen sharply from its October high at over $50, crashing through its major bullish support line and 200-day moving average on a breakaway gap. A subsequent rally failed to close the gap, and it opened a continuation gap in late November. That gap was closed in a recent rally to just over its 50-day moving average at about $40. The MACD is now overbought and the recent rally will likely fail.
The downside target for VRSN is in the low $30s. It should be sold by investors and traders alike.