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FireEye (FEYE) Testing a Channel Support and Challenging the Bullish Outlook

FireEye $FEYE has been in a choppy uptrend (if you can call it that), since early 2017 after it found support around $10.50. The daily chart shows price in a rising channel.

FEYE Daily Chart

(click to enlarge)

Channel Support:
- Price has been retreating since hitting a high just above $19 in April of 2018. 
- In the weekly chart below we can see that this was a previous resistance pivot as well. 
- The fact price failed to push above $20 suggests FEYE might NOT be bullish but rather simply in a sideways market.
- If price holds above $15, the bullish outlook would still be valid, especially if price can climb back above a support/resistance pivot around $16.20. 
- But more telling will be a break below $15, which would open up $13.70 and eventually the low around $10.35. 

Bearish Continuation?
- The weekly chart shows a market that has been bearish but shifted into a sideways market since 2016. 
- It started to look bullish in 2017. The RSi tagged 70, and was able to hold above 40, which reflects development of bullish momentum.
- However, in the long-term, this market is still bearish-neutral. 
- If the 2017-2018 rally is to maintain this medium-term bullish momentum, the weekly RSI should hold above 40, and price should hold above $15.
- If price closes below $15 in July, we should probably abandon the bullish outlook, and expect the bearish trend to continue, or at least bring price down near the $10.35 low. 

FEYE Weekly Chart

(click to enlarge)

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