Verisign is an American technology company involved in Internet security, network, and root zone maintenance services. It owns two of the Internet’s thirteen root name-servers. Name-servers are a critical part of the Internet network because they are the first stage in translating human readable host names into IP addresses. Given the critical role that Verisign plays in the functions of the Internet, long-term prospects for the company are bright.
A look at the 10-year monthly chart clearly shows the longer term up-trend in which VRSN has been. This trend has further sped up since 2017 after consolidation in 2016. More recently, the price of VRSN fell 15% from its February 2020 high. Since then, the stock has retraced about 12% in April 2020.
This retracement began with the bounce up from the bottom of the longer-term trend marked by the yellow line. Also, the price has crossed an important support level, shown by the dotted red line. Both these milestones suggest opening a long position
Lower trend line is a level of resistance below which a stop loss can be located.
Positions taken at $202.85 with stop loss 19.9% below. Just below bottom the Yellow trend line. Short-term investors could look at taking profit at the $245 level suggested.