Don't Ignore This Chart!

This S&P 500 Company Is On Verge Of Major Breakout

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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

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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