Fastenal (FAST) sells fasteners, and related industrial and construction supplies, and Thursday they reported an EPS and revenue beat. The charts were weak back on July 13 and they look weak now. Let's check.
In this updated daily bar chart of FAST, below, we can see a temporary rally in August but prices are back down around the lows. FAST trades below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line shows a decline from the middle of August as traders resumed their stance of being aggressive sellers.
The 12-day price momentum study shows improvement from early September but a bullish divergence with the price action is not a precise timing tool.
In this weekly Japanese candlestick chart of FAST, below, we can see that prices have been in a downward trend since late 2021. The slope of the 40-week moving average line is negative. The weekly OBV line is in a similar decline as traders have been more aggressive sellers than buyers. The MACD oscillator is bearish.
In this daily Point and Figure chart of FAST, below, we can see a nearby price target in the $44-$43 area - a slight new low.
In this weekly Point and Figure chart of FAST, below, we used a five box reversal filter. Here the software shows us a $39-$38 price target.
Bottom line strategy: Despite an earnings beat, FAST is pointed lower. Traders should avoid the long side of FAST for now.
