Cyber security has become big business. Every week it seems we are hearing about some breach of important data files by some hacker, threatening to cost many millions or even billions of theft. In fact last week we heard of not one but two such intrusions into Federal employee files. If it’s easy for the government to be victimized then really anyone/anything is vulnerable.
FireEye and others in this group like CyberArk and Palo Alto Networks are all the rage this year, the perceived ‘victors’ of investment by companies into their own protection. As it relates to the charts, the market believes it as well. FireEye is well off their all time highs but is at yearly highs, and in this very sloppy/choppy market is quite the feat. This is a stock that has potential for growth but is just in the proving stages.
The chart/technicals exploded recently and just this week the stock closed very strong in a very weak tape. The relative strength is impressive, so much so that it has really moved into some higher ground. The stock has been riding the higher Bollinger Band® and upward, turnover has been solid. We like this stock to continue higher but could see a pullback to 50, which might be a better entry point.
