FireEye (FEYE) is a newly issued stock that has been a wild animal on the chart, moving quickly all over the place.
After moving strongly toward $95 on a tremendous run, they crashed back down to earth in a calamitous move that put them in the low $30’s, where it sits today. The stock is incredibly volatile but is in the cyber security group, a very hot area with names like Palo Alto Networks and Fortinet.
FireEye has shown some promise lately, with solid volume and options flow. The technical condition has also improved; the stock shows good relative strength and was issued a buy signal by the MACD. Resistance is at $36, and beyond that a good target is the 200 ma, which clocks in at $47 or so.
This stock can move quite fast, but I like the position here as it came off a trend line on a bit lighter volume. We set up an options trade for the Oct 36 call after booking a big win on the 33 strike last week.
