Don't Ignore This Chart

VerSign Holds One Key Moving Average and Retakes Another

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The broad market environment remains rather negative overall with the S&P 500 well below its falling 200-day SMA and volatility increasing over the last few months. Note that the different environments were highlighted in ChartWatchers this weekend. After a sharp decline into Christmas, stocks rebounded over the last two weeks and this rebound remains in play. As such, I will focus on a bullish setup today. Also note that earnings season starts soon.

VeriSign (VRSN) surged to a 52-week high with a big gap in early November and then corrected over the last two months. The long-term trend is still up because the stock largely held the rising 200-day SMA and the 50-day SMA remains above the 200-day SMA.

There are signs that the correction could be ending as the stock turns up and breaks its 50-day SMA. The indicator window confirms this upturn as MACD moved above its signal line with an move higher this year.


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- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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