by Sam Collins | January 17, 2013 1:39 am
VeriSign (NASDAQ:VRSN) — This company is a leading provider of Internet domain name registration. Analysts are concerned about greater government oversight and unexpected weakness in its core business. Fourth-quarter and full year 2012 earnings are scheduled to be announced after the market closes on Jan. 24.
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 has declined rapidly from its early January high, and on Tuesday, issued a sell signal. If VRSN breaks below its 50-day moving average at $38.87, look for a test of the closing low at $34.15 from Nov. 30. The downside target for VRSN is in the low $30s.
This stock should be sold by investors and traders alike. As with all short sales, check with your broker for any margin requirements and the ability to borrow the stock. A stop-loss order should always be entered after the execution of a short sale in order to protect against the possibility of an unlimited loss.
Source URL: http://investorplace.com/2013/01/trade-of-the-day-verisign-nasdaq-vrsn/
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