Market Overview

FireEye: A Technical Battleground

Investors in FireEye, Inc. (NASDAQ: FEYE) have been watching the stock closely over the last few sessions as shares have been up nearly 20 percent since the low set on May 15th. The stock price added another five percent on Tuesday despite a lack of definitive news items. Taking a look back, technical levels seem to be dominating the trade in this recent momentum play.

Over the last three sessions, FireEye shares hit intraday highs between the span of 11:45AM EDT and 1PM. On two of those sessions (Friday and Tuesday), the stock hit the session high at almost the exact same time -- around 11:50AM and around 11:52AM, respectively.

Now have a look at the levels the stock flirted with around the highs each day: near $28 on Friday, right at $30 on Monday, and right around $32 on Tuesday.

Looking back a couple weeks, FireEye shares exhibit even more interesting trends.

After gapping more than 16 percent lower on May 7th amid first-quarter results, the stock closed down nearly 23 percent. Shares remained rangebound between $26.50 and $29.50 over the next five sessions, marking a fresh low at $25.58 on the sixth session. The stock has recovered markedly since hitting that low on May 15th.

Traders may be continuing to digest the implications of the upcoming lock-up expiration which will happen on Wednesday, May 21st. The lock up will allow insiders to buy or sell 82 million shares without restrictions.

Posted-In: Technicals Movers Trading Ideas

 

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