Fastenal Co. (FAST) has rallied smartly from its March low and is now above the popular moving averages. Let's explore the charts of this industrial supply and distribution company to see how they look after the release of its first-quarter numbers.
In the daily bar chart of FAST, below, we can see the brief decline below the August low and the fast recovery. Trading volume has been slow in recent weeks and the On-Balance-Volume (OBV) line is flat.
The trend-following Moving Average Convergence Divergence (MACD) oscillator turned up for a cover shorts buy signal last month and is now approaching the zero line and a possible outright buy signal.
In the weekly bar chart of FAST, below, we can see the longer-term trend of price. The longer-term picture displays the March decline as just a normal correction within an uptrend. The 40-week moving average line should be crossed when this chart updates on Friday.
The weekly OBV line is still in a decline from April 2019 and suggests considerable liquidation (selling). The MACD oscillator is in sell territory below the zero line but it has begun to narrow.
In this daily Point and Figure chart of FAST, below, we can see a potential upside price target of $40.
Bottom-line strategy: FAST could use some sideways price consolidation before further gains. Traders could use that neutral trend to go long risking a close below $29. Our price target is $40 for the months ahead.
