Fastenal (FAST) , a producer of fasteners and related industrial and construction supplies, is scheduled to report earnings Wednesday morning. Let's check out the charts and indicators ahead of the print.
In the daily bar chart of FAST, below, we can see that prices have pulled back below the cresting 50-day moving average line. The rising 200-day line intersects just below $56 and held in early October.
The On-Balance-Volume (OBV) line has been neutral since September and created a bearish divergence when compared to the price action which made higher highs. The Moving Average Convergence Divergence (MACD) oscillator turned lower in November and just crossed below the zero line for an outright sell signal.
In the weekly Japanese candlestick chart of FAST, below, we can see some signs of weakness. Prices are still in an uptrend above the rising 40-week moving average line.
The weekly OBV line has started to turn lower and the MACD oscillator is crossing to the downside.
In this daily Point and Figure chart of FAST, below, we can see a downside price target in the $52 area.
Bottom-line strategy: The charts of FAST do not show a big top formation but they do show some weakness ahead of earnings Wednesday. Chart support may be found around $56 so let's watch that area for signs of buying. Maybe FAST will not reach the Point and Figure target of $52.
