FireEye (FEYE) continues to make lower highs, while declines to the $12-$10 area do not seem to be attracting buyers. If someone is accumulating shares of FEYE, they are doing it with a great deal of patience.
Even though the share price of FEYE has been adjusted lower the past three years (second chart below) it has lost 50% in the past year. The slopes of the 50-day and 200-day moving averages are still negative. The On-Balance-Volume (OBV) has been in a hard decline since early August, suggesting some aggressive selling and liquidation, with heavier trading volume seen on many down days.
There is a bullish divergence between the lower lows in price in August and October and slightly higher momentum readings. I am not sure that this bullish divergence is enough to give us a turnaround. Prices are pointed lower, but we cannot forecast the future, so a close above $16 followed by a close above $18 would turn the chart bullish.
In this three-year weekly chart of FEYE, above, we can see the downtrend that has dominated trading. Prices are below the 40-week moving average line, but the slope of the line is flattening. The weekly OBV line is neutral at best, and the weekly Moving Average Convergence Divergence (MACD) oscillator is below the zero line.
Bottom line -- if FEYE rallies in the near term, it will be on short notice. I do not see any real base building, nor accumulation to suggest a sustained advance at this time. My best advice at this juncture would be to not press the short side.