FAST finds buyers again around 29.47
Fastenal Company (FAST) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FAST finished Thursday at 32.31 gaining $2.08 (6.88%) on low volume, significantly outperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 31.80, the share confirmed its breakout through the previous session high after trading up to $0.74 above it intraday.
Daily Candlestick Chart (FAST as at Mar 26, 2020):
Thursday's trading range has been $3.07 (10.13%), that's above the last trading month's daily average range of $2.49. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FAST.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, FAST actually lost -3.63% on the following trading day.
After trading down to 29.47 earlier during the day, the stock bounced off the key technical support level at 30.00 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 29.81 in the prior session, Fastenal found buyers again around the same price level today at 29.47.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven 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 456 times, FAST closed higher 56.58% 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 56.36% with an average market move of 0.89%.