After analysts punished NASDAQ:FEYE for a less that perfect earnings outlook, NASDAQ:FEYE has retraced back to the trendline it fell from. However, volume over the course of the retracement has waned, which could be a sign things may get a worse before they get better. I have outlined my 2 ideas below.
Short: FEYE falls through its major support line (purple line) that was previously resistance and forms a Head & Shoulders pattern. If this were to happen I would expect the stock to fall to $15, maybe even as low as $14 (good support found at both levels).
Long: As was my original opinion, the stock falls back to the purple support line but the bulls "Hold the Line!!!" like King Leonidus and the stock heads higher. I would expect first profit taking at $19.36 and then again at just over $20.
Short: FEYE falls through its major support line (purple line) that was previously resistance and forms a Head & Shoulders pattern. If this were to happen I would expect the stock to fall to $15, maybe even as low as $14 (good support found at both levels).
Long: As was my original opinion, the stock falls back to the purple support line but the bulls "Hold the Line!!!" like King Leonidus and the stock heads higher. I would expect first profit taking at $19.36 and then again at just over $20.
