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Weak

Chart to Watch - NASDAQ:FEYE

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of FireEye Inc. (NASDAQ:FEYE).

With stocks you use the monthly MarketClub Trade Triangle to tell the trend and the weekly MarketClub Trade Triangles for the entry and exit points.

FireEye Inc.(NASDAQ:FEYE) just broke out Friday, so the analysis if good if the breakout holds, which it looks like it will do.

FEYE is put in a new monthly green Trade Triangle on Friday's (1/3/14) breakout.

The way to play FEYE from here is to buy today after Friday's breakout and use the weekly MarketClub Trade Triangles as a stop.

Or if buying on the breakout is something you would rather not do, then wait for counter trend corrections and then buy on the next green weekly Trade Triangle, as long as the monthly Trade Triangle stays green.

So NASDAQ:FEYE is a great Chart to Watch right now as it looks to have a lot of upside potential from here.

Thanks,
Jim Robinson
Profit Trading.com

Comments

  1. Ray says:

    I'm a big fan of this as well!

  2. fp says:

    I agree, great analysis.

  3. James R. Estey Jr. says:

    I know you big on the Technical message of the Charts, but Fundamentally the move in this stock price from $41 to $58+ is just not supported by any commensurate increase in earnings. For the 3-month period ending 9/30/2013, FEYE lost $1.61 per share, and ($5.41) over the last nine months ending 9/30/2013. Cash flow from operations during the same nine month period ending 9/30/2013 was a negative $44.424 million. There are just no profits in site since FEYE went public at $20 in September 2013.

    So what is the news resulting in this huge jump. FEYE is acquiring privately held Mandiant for $1.25 Billion. In order to complete this transaction, FEYE will issue new (dilutive) stock to the tune of 21.5 million shares valued at an amazing $53 per shares, plus $106.5 million in Cash. Now FEYE did announce that "billings" were up, and therefore it is believed that reported Revenue will also be higher than previously thought. That's great, but what about the related earnings? No talk about that.

    Now, there is no doubt that the "cyber-security" business is a good spot to be in right now, BUT the idea here is to make money in the form of Earnings, and not lose money for the sake of Revenue. FEYE is just another example of the BUBBLE that has been created in this stock market.

  4. cferg says:

    Thanks Adam, I would like to see more
    individual stock analysis like this on INO.

    • Adam Hewison says:

      cferg,

      Thank you for your kind words about our service. We are always moving forward and strive to do our best everyday for our users.

      Thanks for contributing to the conversation, much appreciated.

      All the best,

      Adam

      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com
      About Adam Hewison
      http://club.ino.com/members/blog/ab

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