Eye of the Fire

Perennial laggard FireEye is showing its first sign of putting up a meaningful fight in a good while. Not only is the stock still well below it 2014 peak of $97.35, but a bounce-back move into the middle of June 2015 proved to be the epitome of a suckers' rally before the latest swoon over the last two years.

This morning, though, a post-earnings rally sees the stock up more than 14% as I write this. Despite the sizable move today, it serves as merely a drop in the bucket relative to the prior downtrend as seen on the weekly chart, below.

At issue now is whether FEYE and perhaps other cybersecurity plays have turned the corner and are on there cusp of enjoying a meaningful rotation this summer. 

First things first, as we need to see FEYE hold back over $13 and thus its 200-day moving average. But this is a good start, especially when you consider all of the longs who were burnt on the way down and have since eschewed the very notion of bottom-fishing this name.

Much like TWTR, that may be a bullish contrarian sign from a sentiment perspective. Hence, FEYE becomes a more seriously candidate to observe for a long entry on a going-forward basis.