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. A recent decision regarding the dot-com renewal agreement with no increases for six years restricts revenue growth for the company.
The stock has recovered from a fall from its October high over $50, which crashed it through a major bullish support line and its 200-day moving average on a breakaway gap. It finally found a bottom under $32 and the recover rally has been impressive, closing two gaps, with the final one at just over $46.
Now, however, it has run into the former breakdown line at $46.80 and appears to be turning down from it. MACD flashed a sell in mid-February. The first support is between $42 and its 200-day moving average at $43. A breakdown there will likely result in a slide to the high $30s. It should be sold by investors and traders alike.