Cybersecurity has become a very big business. Every week it seems we hear about a new breach of important data files by some hacker, threatening to cost many millions or even billions of damage. In fact, last week we heard of not one but two such intrusions into Federal employee files. If it’s possible for the government to be victimized, then really anyone and anything that is online is vulnerable.
FireEye and other stocks in the cybersecurity group, like CyberArk and Palo Alto Networks, are all the rage this year – and the markets agree. FireEye is well off their all-time highs, but it is at yearly highs. In this very sloppy and choppy market, that is quite the feat. This is a stock that has big potential for growth, and it looks like it’s just getting started.
The FireEye charts and technicals exploded recently, and just this week, the stock closed very strong in a very weak tape. Its relative strength is impressive – just look at its steady move up, riding the higher bollinger band up, up, and away on solid turnover. We would like this stock to continue higher, but we could see a pullback to $50, which might be a better entry point.
For Explosive Options subscribers, we continue to hold the July 48 calls bought at 2.40 on June 2.
FireEye Chart Analysis
Take a deeper dive into the chart action (Nasdaq: FEYE) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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FireEye, Inc., together with its subsidiaries, provides cybersecurity solutions for detecting, preventing, and resolving cyber-attacks. The company offers vector-specific appliance solutions that provide threat protection from network to endpoint for inbound and outbound network traffic that may contain sensitive information. Its threat prevention solutions include appliances covering the Web, email, endpoint, file, and mobile threat vectors. It also offers security management products comprising Central Management System that provides cross-enterprise threat data correlation to identify and block attacks across multiple attack vectors; and Threat Analytics Platform, a cloud-based solution that enables security teams to identify and respond to cyber threats by correlating enterprise-generated security event data from any security product with real-time threat intelligence. In addition, the company provides Forensic Analysis System that allows forensics teams to manually execute and inspect advanced malware, zero-day, and other advanced cyber-attacks embedded in files, email attachments, and Web objects; Network Forensic.