When we looked at Fastly Inc. (FSLY) on August 20 we wrote that, "The charts and indicators on FSLY are mixed and bulls can point to a higher price target while bears can point to more aggressive selling. My strategy would be to sell down to a sleeping position or a long position that won't keep you up at night."
Are the charts any more decisive now? Let's check in on this top performer in Jim Cramer's Covid-19 Index.
In the daily bar chart of FSLY, below, we can see a sideways trading range market since late June. Declines or dips into the $80-$70 area have generally been bought as prices have rallied from that zone but the On-Balance-Volume (OBV) line has been declining, telling us that sellers of FSLY have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been down around the zero line the past few weeks, which tells me that there is not much trend strength.
In the weekly Japanese candlestick chart of FSLY, below, we can see some lower shadows below $80 but not a lot. Lower shadows on candlestick charts tell us that the lows are being rejected. On the upside we can also see upper shadows showing that the highs were being rejected.
The weekly OBV line shows a neutral movement since late June. The MACD oscillator has weakened and could cross to the downside for a take profits sell signal.
In this daily Point and Figure chart of FSLY, below, we can see a downside price projection in the mid-$40s.
Bottom-line strategy: In our last review we recommended that you "sell down to a sleeping position or a long position that won't keep you up at night." I would continue that strategy for now.