FireEye (FEYE) reported its earnings after the close Thursday, and unfortunately, the revenue figures came in a bit light. In previous updates I suggested stepping away from the stock if it failed to hold above the year-to-date volume-weighted average price (VWAP). And even before the disappointing earnings, Thursday's regular-session close marked the second session in a row that the stock finished beneath that reference point for 2016. Barring a miraculous recovery from Thursday's 8% after-hours selloff, I can't see devoting much attention to the stock until it's back above the 50-day simple moving average (SMA).
Yelp (YELP) rallied sharply Monday following reports that David Einhorn had increased his position in the stock. But since then, Yelp shares have drifted from $22.54 to back beneath $21.50. Fast forward to Thursday's after-hours session, and we find the stock trading above $23 following their most recent earnings release. The bottom line is that a sustained trade above $23 at Friday's open is something momentum-focused day traders should keep a close eye on.
Front-month light sweet crude futures failed once again as the price probed levels above the 200-day simple moving average. The bottom line is that while the short-term trend is still intact, traders must proceed with caution with the contract bouncing around the 200-day SMA. My sense is that bulls will make at least one meaningful attempt to sustain a break above the 200-day SMA. But as previously discussed, I'm inclined to fade strength between $45.85 and $48.
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