FEYE stuck within tight trading range
FireEye Inc. (FEYE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FEYE finished Wednesday at 12.79 gaining $0.18 (1.43%), notably outperforming the S&P 500 (-0.46%). Trading up to $0.23 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FEYE as at Sep 16, 2020):
Wednesday's trading range has been $0.48 (3.79%), that's slightly above the last trading month's daily average range of $0.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FEYE. Prices continued to consolidate within a tight trading range between 12.44 and 12.94 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 12.83 (R1), the share closed below it after spiking up to 12.92 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 12.94 in the prior session, FireEye ran into sellers again around the same price level today, missing to move higher than 12.92. The last time this happened on Monday, FEYE lost -0.08% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 12.94 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 12.33 where further sell stops might get triggered.
Among the six 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 274 times, FEYE closed lower 53.28% 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 53.65% with an average market move of -1.34%.