Hot Stocks To Watch This Week - Verisign, Yahoo

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Since the Nov ‘08 low was reached, Yahoo (YHOO: 15.15 0.00 0.00%) has been trading within a 6-month uptrend channel. This week, the stock price finally crossed the 200 day moving average, indicating a buy. From a technical perspective, a buy is signaled when the stock’s closing price crosses above the moving average from below after a downtrend. As long as the stock price is above the MA the trend is defined as bullish. The technical side of the stock does look pretty good as indicators such as MACD, OBV and RSI all indicates continuous trend of strength. Previous high last October is now the current resistance at 17.20.

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Verisign (VRSN: 24.26 0.00 0.00%) broke out of a bullish horizontal channel pattern Friday on a large increase in volume to 13.8m shares compared to its daily avg of less than 4m. Bullish channel breakout suggests more medium term upside. Although the MACD suggests that the medium term uptrend momentum is still intact which favors a stable and sustainable recovery, there could still be a near-term pullback as the RSI has reached the overbought region. As such, there could be a retest of the breakout area which would serve as confirmation. But for now, the stock looks like a nice potential play for an aggressive trader. After the recent positive break out above its 50-day MA and 200-day MA, the stock could see more upside potential in the weeks ahead. The next resistance line is at 25.83.