Long
FireEye Tries to Bounce Following Golden Cross
Cybersecurity innovator NASDAQ:FEYE has been trying to stage a turnaround in the last few months.
The stock went through years of weakness after a high-profile IPO in 2013, but new products have helped drive growth more recently.
Takeover speculation initially lifted FEYE in early October. This was followed by an apparently promising analyst day on October 10 and a decent earnings report on October 29.
FEYE rallied at the time, lifting its 50-day simple moving average (SMA) above the 200-day -- a "Golden Cross" chart pattern. It's now pulled back to the 50-day SMA and held its July peak above $16. Some traders may want to watch those levels for risk management.
FEYE may also appeal to some investors on a valuation basis because it trades for less than 5 times revenue, far below the multiples of most software companies.
The stock went through years of weakness after a high-profile IPO in 2013, but new products have helped drive growth more recently.
Takeover speculation initially lifted FEYE in early October. This was followed by an apparently promising analyst day on October 10 and a decent earnings report on October 29.
FEYE rallied at the time, lifting its 50-day simple moving average (SMA) above the 200-day -- a "Golden Cross" chart pattern. It's now pulled back to the 50-day SMA and held its July peak above $16. Some traders may want to watch those levels for risk management.
FEYE may also appeal to some investors on a valuation basis because it trades for less than 5 times revenue, far below the multiples of most software companies.
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