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
