FireEye (FEYE) is close to completing its base. (December 19, 2014)

Free Chart


I want to look at FireEye ( NASDAQ:FEYE ). As you probably know this is a security firm, unless you’re Sony I guess, it keeps your computers safe; all your information gets to stay just with you. The thing that I like about this stock is not so much what the company does; I don’t really care too much about that, it’s that the stock has been in consolidation for really most of this year, at least the last half of this year.

What you want to look for here is the 200-day moving average, it’s like it’s getting lower every single day because the price is trading below it every single day. Look for these ultimately to converge, and the way this thing is trading, maybe in just another week or two maximum. Then you’re going to have a real test of this base, you can see this is really getting pretty narrow.

So what I would suggest doing is this, watch this stock, it just looks to me like it’s quote “done going down,” as I like to say. It’s tested this, about $28.00, as support several times, 25.00 down here, so the thing has a well established level of demand right down here. I would want to buy this stock on any weakness.

This is not for a trade, this is for a move higher when ever it decides to move higher; it’s really one of those things where you’re looking at it and say it’s been trading here long enough to where it doesn’t look like it’s going lower. It’s only going to trade in this range for so long, if you can buy this in the bottom half of the Bollinger Band complex here, say anywhere below $30.00, I would definitely want to take advantage of that. Just hang on to it; let this technical picture play itself out and in my mind you probably going to wind up making some pretty good money on FireEye ( NASDAQ:FEYE ).