FEYE breaks back below 20-day moving average
FireEye Inc. (FEYE) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
FEYE finished the week -0.07% lower at 14.42 after losing $0.18 (-1.23%) today, notably underperforming the S&P 500 (-0.16%). Closing below Thursday's low at 14.45, the stock confirmed its breakout through the previous session low after trading up to $0.14 below it intraday.
Daily Candlestick Chart (FEYE as at Jun 14, 2019):
Friday's trading range has been $0.29 (1.99%), that's below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FEYE.
FireEye closed back below the 20-day moving average at 14.52. When this moving average was crossed below the last time on May 7th, FEYE lost -0.25% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 14.67 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 14.22 where further sell stops could get triggered. With prices trading close to this year's low at 13.85, downside momentum might speed up should the market break out to new lows for the year. As prices are trading close to June's low at 13.93, downside momentum could accelerate should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for FireEye. Out of 218 times, FEYE closed lower 55.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.88% with an average market move of -1.85%.