Monday night during his popular Mad Money program on CNBC Jim Cramer sat down with Kevin Mandia, the CEO of FireEye Inc. (FEYE) . The cybersecurity company had a great quarter and is the best in the business, Cramer said. Because Monday's show focused on Veterans Day, Jim asked how does having veterans on the team help someone like Mandia? They have great attention to detail and incredible leadership qualities, Mandia said, adding that he has many of his senior managers meet with four-star generals in an effort to pick up some of those qualities.
When asked about the recent election, the CEO said that they were "pretty darn secure from my perspective." If something were to have happened, Mandia said, his team would have noticed it. All good but let's check out the charts and indicators Tuesday morning to see how the fundamentals and technical fit together.
In the daily bar chart of FEYE, below, we can quickly see two rallies separated by a four-month correction. Digging deeper we can see a strengthening pattern from August.
In August FEYE rallied back above the 50-day and 200-day moving average lines and shortly thereafter the slopes of both of these indicators turned bullish. In early November the 50-day line moved above the 200-day line for what is commonly called a golden cross buy signal.
The volume pattern is interesting in that we can see volume increase from August. The daily On-Balance-Volume (OBV) line can be seen rising the past year but the gains have been stronger from August signaling stronger accumulation.
In the lower panel the trend-following Moving Average Convergence Divergence (MACD) turns up above the zero line in September for an outright go long signal.
In the weekly bar chart of FEYE, below, we went back four years to show the size of a what I believe is a large base pattern. For nearly three years FEYE has hammered out a bottom reversal. FEYE is above the rising 40-week moving average line.
The weekly OBV line has already broken out of its base pattern. The MACD is bullish (but hard to read).
In this first Point and Figure chart of FEYE, below, we can see an upside price target of $24.50.
In this second Point and Figure chart of FEYE, below, we used weekly data and the chart is projecting an upside price target of $30.50.
Bottom-line strategy: Buying interest in FEYE has come on strong from August. With price targets of $24.50 and $30.50 I want to approach FEYE from the long side. Risk below $17 for now and probe the long side around $19.