FEYE — initiating coverage 1/12/15 — long

FireEye (FEYE) // cybersecurity // earnings due 2/11 post-close

The year”s earlier steep drop was isolated to that one effort. Sideways ranging since then has held a retest of the low. Multiple opportunities to resume the decline have been ignored — e.g. the low”s retest, November”s gap down, December”s slide… The year began with a dip to support that has recovered entirely to December”s high while volume expands modestly. The base should launch an obvious breakout within days or just hours if intending to avoid a new downleg.

DATE	LAST	support	resistance	target
1/12	33.68	31.50-32.65	33.95, 36.50	44.15, 48.05

The table is updated as price action may require. A “long” should hold tests of support and break above resistance; a “short” should hold tests of resistance and break under support. Updated parameters are contained in a new table row.

Merely initiating coverage does NOT equate to being immediately actionable. Aggressive traders that act before a conservative closing confirmation (i.e. above resistance for longs, under support for shorts) might also consider exiting the position intraday.

Questions for me and discussion with other members on this coverage should be added to this Blog post”s comments section.