Verifone Systems continues its downtrend
VeriFone (PAY) is a global leader in secure electronic payment systems. The company provides products, services and solutions for cashless payments. The product range is aimed at network operators, banks, retailers, hotels and restaurants, gas stations, and government agencies and the healthcare industry. The stock is listed on the NYSE.
Over the last five years the stock made a downtrend. Since the beginning of June, the stock made also a new downtrend on the daily chart, which already made a correction. This results in an opportunity for a short trade.
PAY Daily Chart (5 years)
Source: ATT Trading
Management and risk description
The stock of PAY made 75% correction of the last movement since the end of September. At the moment, the stock moves in a sideways phase (Fig.2 - green, red line) and we could start our short trade, if the stock will leave this sideways phase.
A trader could be looking at a subordinate trend to get an entry. Figure 2 shows a resistance zone which is located (drawn in red bar) that additionally underpins the preferred short scenario.
PAY Daily Chart
This resistance zone consists of the SMA200 line (red line) and the EMA130 (blue line). If this zone is not significantly broken, the downtrend is intact. If the price significantly overcomes the price level of about $32, our short idea would be over.
Target: $26.00, $23.50.
Time horizon: medium term.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more