Since the beginning of 2012, Fastenal Co. (FAST) has tested its 48-49 price resistance zone on seven different occasions - most recently four weeks ago - without any success. But this multi-year consolidation follows a prior uptrend so I expect that we'll see a breakout sooner rather than later. Volume was strong on the most recent advance while volume has slowed considerably on the recent selling. Look to the rising 20 week EMA to hold as support should we see continued selling. Here's the chart:
There's been a lot of back and forth over the past several years. To confirm the next leg higher in FAST, look for a price breakout above 49.00 and heavy volume to accompany the breakout.
Happy trading!
Tom
About the author:
Tom Bowley 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
