Vrsn

[flea]

Is this capitulatory selling? I'm tempted to buy on a break of yesterdays high of 27.16, looking for $30 or even a test of the resistance level at $32.50.

Anyone else have a view?

Regards

Flea

 

[Naz]

Hi Flea,

There are still a lot of daytraders that still like VRSN.So i look back to how they used to trade it and i remember that there was always some kind of resistance at whole numbers and fib levels.Goldman and Morgan Stanley are the primary and secondary ax.

VRSN can bounce strongly from oversold conditions but it can be very volatile and if held overnight can gap and run hard for the first couple of hours.Although its now a kitten compared to what it used to be,my advice is keep a close eye on your position because when it wants to i bet it can still turn in the blink of an eye.Good luck

 

[flea]

Thanks naz. It certainly looks fairly volatile for a $30 stock, not a stock you can turn your back on

Regards

Steve

 

[flea]

Just an update.

The stock never set up the next day, infact it tanked quite hard since when it has steadied and traded in a tight range.

worth keeping an eye on for a break either way could prove profitable, it now looks finely balanced.

Incidentally Naz, although I didn't trade it I did watch it and your right it's a real harem scarem stock.

 

[Naz]

The chart on VRSN shows how important resistance can be at whole numbers as i mentioned before.However the main thing that can hurt or profit traders is how it can suddenly turn and run like it did first thing in the morning from $26.8 to $25.8.Thats 3.8% in 5 mins.

For me this is the reason i trade the Nasdaq, the oppertunity for volatility.Its always nice to take trades at extremes.VRSN yesterday was at an extreme at $27.Not only was it at a whole number.T/A guys would have noticed a double top from 2 days previously and if you do yor own research you will see $27 is a 50% fib retracement from the high at 10'oclock on 31/1 ($32.4).