VeriSign (VRSN) Resuming April Strategic Advance?

Conclusion, Investment Implications, Strategy

VeriSign, Inc. (VRSN) is amid favorable conditions to resume its April 2021 Strategic advance from major underlying support near $209.54, which is currently being tested. A sustained rise above this area would target an additional 9% rise to $234.56 per share. This is an Asbury Value trade idea.

Analysis and Rationale

VeriSign, Inc. (VRSN), together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. It enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which support global e-commerce. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.

The rightmost green highlights in Chart 1 below show that VRSN is currently rebounding from an Aug 16th test of its 200-day moving average, a widely-watched major trend proxy currently situated at $209.54 (upper panel) while rebounding from monthly (our Tactical time period) oversold extremes (lower panel). The other green highlights show that similar oversold extremes closely coincided with Tactical bottoms on Jun 3rd and Mar 12th. These conditions set up a low-risk opportunity to buy an uptrending stock in a potentially low-risk/high reward environment just above major support.

Chart 1

If the current major uptrend in VRSN is still valid, this is where it should resume. A sustained rise above the $209.54 area would indicate this is indeed the case and target an additional 9% rise to $234.56 per share.

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $207.65 area, a long entry price of $214.36 would provide a 1:3.0 risk/reward ratio (risking $1.00 to make $3.00) with an initial risk of 3.1%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.

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VeriSign (VRSN) Resuming April Strategic Advance?

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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VeriSign (VRSN) Resuming April Strategic Advance?

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models