Today’s trading idea comes from the technology sector.
And more specifically, software stocks. Varonis Systems (VRNS) and Commvault Systems (CVLT).
The driver for this pair trade is the bullish trading setup in VRNS.
Our multi-factor model score for Varonis Systems stock (VRNS) is at a 10, which is the highest possible. So we are bullish on VRNS.
With a pairs trade, one tries to find a weaker stock in the sector to hedge risk. Commvault Systems stock (CVLT) registered a multi-factor model score of -6.5.
This idea is for trend traders (near to intermediate term), so it’s important for Varonis Systems to remain above its up-trend support line. See my comments and analysis on the charts below.
Varonis Systems VRNS Stock Chart
Commvault Systems CVLT Stock Chart
Ratio of VRNS to CVLT Price Chart Analysis
The author may hold positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
