FireEye (FEYE) endured a long decline in 2015 and prices worked still lower in 2016. The pace of the decline has slowed recently and some more aggressive buying has materialized this month, but that is really very limited improvement and not likely to sustain a meaningful turnaround.
A look at the charts and indicators will help you visualize the current condition of FEYE.
In this daily bar chart of FEYE, above, we can see a stock that sinks to a new low and then rallies to a lower high and then repeats the process. New lows are seen in May and November followed by February and March. One thing to point out is there are several gaps on this chart. Even in early February when the stock is around $12, there is a heavy volume downside gap. Even at a relatively low price level, there seem to be enough investors who are surprised by the news that they create price gaps.
The daily On-Balance-Volume (OBV) line has been going down all year, but there is an upward movement this month signaling some more aggressive buying of FEYE. As prices made lower lows in February and then March, the 12-day momentum study made higher lows, telling us the pace of the decline has slowed. FEYE is above the declining 50-day moving average line and below the declining 200-day moving average line.
In this weekly chart of FEYE, above, we can see the big decline and the long sideways to lower pattern of the past year. Prices are below the declining 40-week moving average line. The weekly OBV line is neutral and the MACD oscillator is still below the zero line.
In this Point and Figure chart, above, we can see the numerous rally failures over the past year. It will probably take a rally to $14 to break the intermediate-term downtrend.
Bottom line: There is a glimmer of a chance of a rally with the recent improvement in the OBV line and a bullish divergence from the momentum study. Prices could pop to the $16-$18 area and then weaken again because a developed base pattern is absent.