Don't Ignore This Chart!

FireEye Printing Bullish Candle On Weekly Chart At Support

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FireEye (FEYE) hasn't had much to brag about since June 2015, but for those traders with high risk tolerance levels, FEYE could provide very nice returns from its current price level.  The cyber security company reported better than expected revenues and EPS after the close on Thursday and promptly opened this morning above its 20 day EMA (not shown on chart below).  FEYE has hit long-term weekly support and with a decent finish today, we'll see a reversing candle in play.  Check this out:

Volume in the first 40 minutes today is over 5 million shares.  FEYE's average daily volume is just under 5 million shares per day over the past few months, so clearly the stock is under accumulation in early action.  In my opinion, FEYE will have a much more bullish technical outlook if it finishes well above its opening price of 12.74 today.  Currently, that's not only the open, but the high of the day.  The bulls need to clear that level later today.

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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