FireEye (FEYE) has been trading sideways all year, but unfortunately the price action and indicators do not suggest that a durable base has been established. Let's dig deeper.
In this daily chart of FEYE, above, we can see that it has been moving sideways for the past eight months. In the early weeks of this trading range, prices traced out nearly a $10 high/low range, but more recently the price action has been much tighter. Prices have crisscrossed the 50-day moving average line for much of 2016, but now prices are below both averages.
The volume of trading has not really expanded during the sideways range (first panel), and the On-Balance-Volume (OBV) line just moves up and down with the price action. Increasing volume or a rising OBV line would go far in suggesting that we were witnessing a bottom. In the lower panel is the 12-day momentum study, and there currently are no bullish or bearish divergences.
In this three-year weekly chart of FEYE, above, we can see that prices are below the downward-sloping moving average line. This moving average line has defined the downtrend on FEYE for the past year. I see no trend to the volume of trading, and the weekly OBV line is neutral. The Moving Average Convergence Divergence (MACD) oscillator looks like it will generate a new sell signal on FEYE. With a neutral daily and weekly chart of FEYE, we would look for more sideways price action.