FAST closes above its opening price after recovering from early selling pressure
Fastenal Company (FAST) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
FAST finished Wednesday at 36.79 losing $0.03 (-0.08%), slightly underperforming the Nasdaq 100 (0.02%). Trading up to $0.22 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FAST as at Jan 15, 2020):
Wednesday's trading range has been $0.53 (1.45%), that's slightly above the last trading month's daily average range of $0.52. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FAST.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 36.45 earlier during the day, the market bounced off the key technical support level at 36.58 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 36.47 in the previous session, the share found buyers again around the same price level today at 36.45. The last time this happened on January 10th, FAST gained 0.72% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 37.17 where further buy stops might get triggered. With prices trading close to this year's high at 37.33, upside momentum could accelerate should Fastenal be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Fastenal. Out of 452 times, FAST closed higher 56.64% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.19% with an average market move of 0.92%.