• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

FireEye Is Set to Rally With a Base Breakout Coming Soon

The chart of FEYE has improved in the past four weeks and prices look ready to launch into a rally.
By BRUCE KAMICH
Sep 26, 2018 | 01:42 PM EDT
Stocks quotes in this article: FEYE

In another "Executive Decision" segment last night in the West Coast edition of Mad Money, Jim Cramer spoke with Kevin Mandia, CEO of cybersecurity company FireEye (FEYE) . FireEye has multiple ways to make money and the company's mission remains the same -- to respond to every attack that matters and do their best to detect, protect and prevent as many attacks as they can. I last looked in on FEYE in early June writing that " While the $19.50 and $20 price points are key to a breakout on the upside, I think aggressive traders could probe the long side at current levels....The $27-$30 area is my price target for now." The chart of FEYE has improved in the past four weeks and prices look ready to launch into a rally.

In this daily bar chart of FEYE, below, we can see that prices have rallied from a mid-August nadir. FEYE is now back above the rising 200-day moving average line and the flat 50-day moving average. The daily On-Balance-Volume (OBV) line shows a much stronger pattern than prices do since February. FEYE declined from April to August but the OBV line really only decline in June and is now at a new high even though prices are well their April zenith. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish mode.

In this weekly bar chart of FEYE, below, we can see a 2.5-year base pattern for FEYE. Prices are above the rising 40-week moving average line. A weekly close above the April high should be an important upside breakout. The weekly OBV line is firm and very close to making a new high for the move up. The MACD oscillator is on the zero line and poised to give a buy signal when it turns higher.

In this first Point and Figure chart, below, an upside price target of $20.31 is being projected.

In this second Point and Figure chart, below, we can see that trades at $19.50 and $20 will be bullish and allow us to give higher price targets.

Bottom line strategy: One Point and Figure chart gives us a $20.31 price target so this should mean we break out of the large base formation. Aggressive traders should consider going long FEYE on strength above $17.50.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing

More from Investing

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Treat Becton, Dickinson and Company With Care

Bruce Kamich
Jun 24, 2022 1:25 PM EDT

BDX gets an upgrade, but are the charts healthy enough to recommend?

When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends

Bob Ciura
Jun 24, 2022 1:00 PM EDT

Here's why in recessions and bear markets, the right mega-cap stocks can offer security -- and good yields.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login