Traders have their own preference on what kinds of stock they want for trading. Among the most popular industry is the cyber security. FireEye, Inc. (FEYE:xnas), an internet security systems company, remains to be on the frontline and center of the topics flourishing regarding cyber security due to the company’s threat detection software.
Considering the weekly chart for the stock of FEYE, the pop and drop of the stock is very noticeable and has become a sore sight to traders. The massive drop ended in last year’s early second quarter. This end led the stock to go through a longer consolidation phase. This longer-than-the-usual consolidation period served as constructive in order to support the stock and to push it a little higher. Just this month of February 2015, the stock made to push itself past the blue horizontal resistance line. Since then until now, it continues to consolidate above that line.
Just this Tuesday, the stock of the firm rallied and the result pushed back the FEYE’s stock at the advantage. The stock is now in a better and promising momentum spot. After the massive ups and downs of the stock’s price, the 2.50% rally helped the FEYE’s stock to get out of the bull flag pattern and to offer a better chance of gaining continuous upside momentum. FEYE’s stock would be one of the good buys for a trade above the intraday highs in Tuesday. However, the 2.50% rally can easily be labeled as bluff and lead the stock to chop back and forth again once any bearish reversal of the rally will occur.