Don't Ignore This Chart!

VeriSign Whiffs with a Big Bearish Engulfing

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There are bearish engulfing patterns and then there are BEARISH ENGULFING patterns. VeriSign formed the latter with one of the biggest I have seen in some time. The chart shows the bearish engulfing pattern opening above the April high and finishing near the early March low. The stock got a small bounce off the support level and then moved lower on Thursday. A break below support would confirm the bearish engulfing and signal the start of a downtrend. I would consider this support break valid as long as the stock remains below 88.50 (red line). The indicator window shows the price relative (VRSN:SPY ratio) moving lower since March as the stock underperforms the broader market.  


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--Arthur Hill CMT

Plan your Trade and Trade your Plan
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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. 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 market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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