Don't Ignore This Chart!

FAST Makes A Quick Move Higher

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

I wrote about Fastenal (FAST) in this blog just two weeks ago.  This is a stock that had been in a sideways consolidation pattern for many years after a prior uptrend.  So I was looking for the next breakout.  However, when a stock consolidates for years, you want to see the actual breakout before jumping on board.  Otherwise, you could have capital tied up for a long, long time with nothing to show for it.  Well, the breakout was finally made simultaneously with its quarterly earnings release earlier this week.  Check out this long-term weekly chart:

I like entry at the current level as me might see FAST explode from this level.  To be a little on the safe side, I'd consider a second entry at the rising 20 week EMA, currently at 45.53.  A weekly close beneath the 50 week SMA at 44.28 would make sense.  My target here would be 65.00 in time.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More