Don't Ignore This Chart!

FAST Makes A Quick Move Higher

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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 at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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