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Fan Yang

FireEye (FEYE) Respecting Channel Support So Far

FireEye $FEYE has been trading in a choppy rising channel since early 2017 when price bottomed around $10.50. As we can see on the daily chart, price is again at the channel support. 

FEYE Daily Chart

(click to enlarge)

- Although price is testing a channel support, I think it's more important to recognize that price is essentially consolidating around the 200-day simple moving average.
- We can ignore the prevailing rising channel, because it clue us in on whether FEYE is bullish, or whether this channel is simply a flag pattern in a long-term bear trend.
- But if price falls below $15, it would show that the market is at least bearish in the short-term. This would open up the $13.50-$13.70 pivot. 
- Below $13.50, we have the $10.30-$10.50 low in sight.
- A hold above $15.50 at the moment maintains a slight bullish bias.
- However if the market is indeed bullish, it would push price above $17.50, which first opens up the $19.20-$19.80 consolidation resistance (seen on the weekly chart).
- Ultimately, a push above this resistance establishes a price bottom and opens up the $24-$25 area, which is another critical support/resistance pivot. 

FEYE Weekly Chart

(click to enlarge)

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