Broke out past key resistance on 1.7X relative volume
Ready for an easy move to $35 highs from 2007
Verisign shares broke out of an ascending triangle implying a move that is likely to see resistance at $33, more than 25% higher from here. The owner of the .com and various other Internet identifications is likely to continue to experience strong growth, and recent price increases should boos the bottom line. Also, cyber security continues to be a major threat, and VRSN has authentication and security software. There is also likely to be a surge in business on the mobile end with most smart phones having internet access. Shares trade 15.3X next year’s earnings estimates, and just 3.3X cash value.
Today, a large options trade suggested a sustained move higher in shares:
VeriSign (VRSN) traded a 2,000 contract January 30/25 bull reversal trading for a $1 credit, selling the $25 puts and buying the $30 calls in a leveraged bullish bet.
The chart set-up is below, and a break through the 200 week EMA that coincides with the 38.2% Fib level of $26.25 is a major buy signal.