• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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 Likely to Slip Still Lower in the Weeks Ahead

Stand aside and see how far the current correction carries.
By BRUCE KAMICH
Mar 05, 2021 | 10:10 AM EST
Stocks quotes in this article: FEYE, SWI, MSFT

For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with Kevin Mandia, CEO of cybersecurity firm FireEye (FEYE) .

Mandia said the attacks just keep on coming. Right now, FireEye is still working on cleaning up the remnants of the massive Solar Winds (SWI)  cyberattack. This week we learned of four new zero-day vulnerabilities on Microsoft (MSFT) Exchange email servers. Zero-day exploits are those which currently have no patches or fixes available.

Mandia was quick not to place blame. however, stating that developing software is a lot more complex than most people realize and companies are well-intentioned and are doing the best they can.

When asked how FireEye is able to detect intrusions and attacks, Mandia explained that their entire organization is built for investigations big and small. As soon as an anomaly is detected, they spring into action and deconstruct entire systems until they discover exactly what happened and why.

Let's spring into action with a look at the charts.

In this daily bar chart of FEYE, below, we can see how prices shot straight up in December and subsequently has slowly given back much of those gains. Prices are trading below the cresting 50-day moving average line but still above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line jumped strongly in December and has slowly declined from late December telling us that the aggressive buying in December was a selling opportunity for some traders.

The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal.

In this weekly bar chart of FEYE, below, we can see a weakening picture. Prices are edging lower but still above the rising 40-week moving average line. The weekly OBV line has been stalled/soft the past two months. The MACD oscillator is crossing to the downside for a take profit sell signal.

In this daily Point and Figure chart of FEYE, below, we can see a downside price target in the $17 area.

In this weekly Point and Figure chart of FEYE, below, we see that the software is projecting the $17-$16 area as a price objective but chart support is probably a bit lower.

Bottom line strategy: We reviewed the charts of FEYE on November 6 and wrote that "Traders could go long FEYE at current levels risking a close below $15. $22 is our first price target." If traders were probably stopped out in December before the surge higher, today I suggest no long position in FEYE - just stand aside and see how far the current correction carries.

(Microsoft is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells MSFT? Learn more now.)

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 prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Cybersecurity | Technology | Mad Money | Executive Interview

More from Investing

The 5 Pillars of Exceptional Trading

James "Rev Shark" DePorre
Apr 10, 2021 10:00 AM EDT

When you put them together, trading success is nearly inevitable.

Market's 'Superficial' Highs Are Only Skin Dip

James "Rev Shark" DePorre
Apr 9, 2021 4:36 PM EDT

You can't call this market overbought when so much of it isn't participating.

Pinterest: Double Top or Breakout Pending?

Bruce Kamich
Apr 9, 2021 3:00 PM EDT

What would I do in this case? Here's the logical choice.

I'm Continuing to Build a Position in Skillz

Timothy Collins
Apr 9, 2021 2:24 PM EDT

SKLZ shows explosion moves to the upside when it emerges from the oversold area.

Royalty Pharma Shows Promise

Bruce Kamich
Apr 9, 2021 1:10 PM EDT

Here's how traders should play RPRX right now.

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

  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 08:05 AM EDT BOB LANG

    Bitcoin vs. Gold: Which Should You Invest In Now?

    Read my article TheStreet here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 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