Quick review of prior trading stats for August Suck!
Wyckoff Accumulation Schematic
Wyckoff Distribution Schematic
Point and Figure Chart (long term)
The point and figure chart below gives us a huge upside target of $40. I like making crazy calls but FEYE has been trading like no one has any idea what valuation it should trade near.
The large climatic volume is obvious and is a strong sign of a “bottom.” The higher lows on less volume show that supply is contracting and that bulls are successfully absorbing supply. I’ll note the last upswing was on strong volume (demand).
Point and Figure Chart (short term)
Because I’m a little indecisive I reviewed a shorter timeframe. The chart below suggest the downside target has been achieve. We can also appreciate the higher low.
Bar Chart (weekly)
This weekly chart shows that FEYE is undergoing a series of test and re-test. It looks like bulls are absorbing weak hands shares. I was a little concerned of the amount of selling volume noted two weeks ago; however, the lack of downward follow through suggest again that buyers are present.
BLUF (bottom line up front)
FEYE is trading at support and offers longs a very low risk entry as a stop loss is easy to define. I’ll add that despite my confidence that bulls are absorbing supply, the amount of selling volume present suggest there are more shares to “shake loose.” Traders are devious and I suspect that support will be violated to shake weak bulls. I believe at the present time that such a dip would be bought and create a bullish “spring.”
Good Luck Traders!