FAST dominated by bears dragging the market lower throughout the day
Fastenal Company (FAST) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
FAST ended the week 0.98% higher at 57.76 after tanking $1.24 (-2.1%) today on high volume. This is the biggest single day loss in over a week. Today's closing price of 57.76 marks the lowest close since September 7th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 58.75, the share confirms its breakout through the previous session's low having traded $1.32 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (FAST as at Sep 14, 2018):
Friday's trading range was $1.95 (3.3%), that's far above last trading month's daily average range of $1.10. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Breaking below the key support level at 58.47 today, it is now likely to act as resistance going forward. After having been unable to move above 59.20 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 59.38.
While the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Selling could speed up should prices move below the close-by swing low at 56.77 where further sell stops might get activated.