2 2 correctly predicted forecasts
Send me real-time posts from this site at my email
Fan Yang

FireEye (FEYE) is in a Bullish Breakout

FireEye $FEYE broke above a subtle resistance in the 16.20-16.50 area. In a previous look at FEYE, we noted that a break above this area opens up a bullish outlook.

FEYE Daily Chart

(click to enlarge)

Head and Shoulders Avoided:
- The daily chart shows a head and shoulder pattern. Here it isn't a "topping" pattern, but it still has a bearish implication especially if price were to break below the 13.50 neckline.
- Instead, price found support at the neckline and rallied sharply, breaking above the "shoulder". 
- This breakout suggests that FEYE is shifting from a sideways market to a bullish one. 
- I think price will test the 18.00 pivot and then the 18.50 resistance. 
- There could also be upside to 20.
- The bullish outlook should be limited to 24.65, which was a critical support  that is likely to turn into resistance.