I’ve alerted my twitter followers about the potential bounce off the rising 50-day exponential moving average in FireEye Inc (NASDAQ:FEYE) shares on Thursday and the stock has come up to my expectations as it was among the top gainers of Nasdaq exchange during Friday’s session. It ended the day at $15.38 trading more than 5M shares on decent volume.
As you can see from the daily chart posted above all indicators are now crossing up as yesterday’s price printed a nice bullish candle. Nearest resistance for the stock is at $15.75. If this level is crossed and the stock is able to sustain above this level, then it might go to $16.15 again.
On the downside, the stock has support at $14.72. I feel this stock could be a strong option as a long setup if the markets can stabilize and push higher.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.