Verifone Systems continues it´s downtrend

 

Background

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 5 years the stock made a downtrend. Since the beginning of June this year 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.

 

figure 1

figure 1

 

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.

 

figure 2

figure 2

 

This resistance zone consists of the SMA200 line (red line) and the EMA130 (blue line). Before this zone is not significantly broken the downtrend is intact. If the price significantly overcome the price level of about $32, our short-idea would be over.

Parameters

Entry: $30,00

Stop: $32,00

Target: $26,00, $23,50

Time horizon: medium-term

 

Disclaimer:
Disclosure according to § 34b WpHG due to potential conflicts of interest:
The author is not invested in the relevant securities or underlying securities at the time of publication of this analysis