Indications Suggest NASDAQ:FAST Could Be on the Verge of a Breakout.

Our stockscreener has identified a possible breakout setup on FASTENAL CO (NASDAQ:FAST). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:FAST for potential opportunities.

Analyzing the Technical Aspects

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 9 out of 10 to FAST. Both in the recent history as in the last year, FAST has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that FAST is one of the better performing stocks in the market, outperforming 89% of all stocks. We also observe that the gains produced by FAST over the past year are nicely spread over this period.
• FAST is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so FAST slightly outperforms the market at the moment.
• In the last month FAST has a been trading in the 53.97 - 60.93 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• FAST is an average performer in the Trading Companies & Distributors industry, it outperforms 67% of 53 stocks in the same industry.

Our latest full technical report of FAST contains the most current technical analsysis.

Why is NASDAQ:FAST a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:FAST currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, FAST also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 59.67. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 57.84, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:FAST?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.