VeriSign Signaling Turnaround

01/07/2009 10:24 am EST

Focus: STOCKS

VeriSign Inc. (VRSN) - This provider of infrastructure services that enable and protect interactions of voice, video, and data networks flashed two Collins-Bollinger Reversal (CBR) buy signals in November after falling from above $40 early last year to almost $16.


Following an upside break of the long-term trend line, the stock pulled back on normal profit taking, and then, in a show of strength, the stochastic flashed a buy signal and the 20-day moving average broke above the 50-day moving average—more evidences of a turnaround.

The initial trading target for VRSN is $25, but longer-term buyers may want to hold this stock as an investment.

By Sam Collins of OptionsZone.com

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