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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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