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FireEye (FEYE : NASDAQ) interesting chart pattern formation 14 January 2017

FireEye (FEYE : NASDAQ) the cyber security software maker has had very tough couple of years. Could its fortunes might be changing? We take a look at the longer term weekly chart and the chart pattern formation which has been constructive over the past few weeks from a technical perspective.

FireEye weekly chart

FireEye weekly chart

From the chart, we can see there has been a lengthy consolidation in year 2016. The price moves side way and took out the lows of February 2016 in late October 2016. There are two key pattern formation which completed at the late October 2016 low. These patterns are marked with the shaded blue and yellow area.

The price formed a Gartley 222 pattern formation in late December 2016, highlighted in blue. The price found support at the 78.6% retracement and the 100% price projection and a 127.2% expansion. We have seen the price move higher. It is now possible in the coming few weeks the price could rise to the $16.20 region. If the price manages to get above the $17.75 it would be a first indication that the stock is getting ready for a break out.

Wish you a good weekend and a prosperous trading week ahead!


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