FEYE breaks above 20-day moving average for the first time since February 18th
FireEye Inc. (FEYE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, FEYE finished Thursday at 11.83 gaining $0.40 (3.5%), significantly underperforming the S&P 500 (6.24%). Trading up to $0.21 lower after the open, FireEye managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, FEYE gained 4.67% on the following trading day. Closing above Wednesday's high at 11.68, the share confirmed its breakout through the prior session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (FEYE as at Mar 26, 2020):
Thursday's trading range has been $0.60 (5.19%), that's far below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FEYE.
The stock managed to close above the 20-day moving average at 11.46 for the first time since February 18th.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for FireEye. Out of 86 times, FEYE closed higher 56.98% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.49% with an average market move of 0.52%.