Remember FireEye Inc. (FEYE) ? The stock used to trade above $90 a share back in 2014. It fell from grace and did not start to stabilize and bottom out until 2016. It has spent months and months trading sideways and then quietly started to inch higher in 2017. Prices are now up to a potential breakout level so things have finally gotten interesting. Let's check out the charts and indicators.
In this daily bar chart of FEYE, below, we see an uptrend over the past twelve months. The uptrend is not that amazing but the second part of the rally is very interesting, in my opinion. Since August a number of bullish technical signals have been flashed. Prices turned up above the rising 50-day moving average line and the bullish 200-day line too. In late October when many stocks were weak the 50-day line turned up above the 200-day line for what is commonly called a (bullish) golden cross. The daily On-Balance-Volume (OBV) is positive for the year but its rise is stronger from August and it recently made a new high. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early September for an outright go long signal.
In this weekly bar chart of FEYE, below, we look at four-years of data to see the scope of the base pattern. Prices are above the rising 40-week moving average line. Volume has been increasing in recent months and the weekly OBV line has broken out to new highs the past few months. The weekly MACD oscillator is above the zero line in a bullish mode.
In this longer-term Point and Figure chart of FEYE, below, we can see an upside price target of $30.50. This is a far cry from $90 a share but it is a 50% move from here. A trade at $21 will be a double top breakout.
Bottom line strategy: the daily and weekly OBV lines have been leading on the upside. Traders could go long FEYE at current levels and on strength above $20.50 and $21.00. $30 is my initial price target and stops could be a close below $18.