FAST finds buyers again around 47.13
Fastenal Company (FAST) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, FAST finished Tuesday at 47.53 edging higher $0.07 (0.15%), slightly underperforming the Nasdaq 100 (0.38%). Today's close at 47.53 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FAST as at Aug 04, 2020):
Tuesday's trading range has been $0.45 (0.95%), that's far below the last trading month's daily average range of $1.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FAST.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 27th, FAST lost -1.84% on the following trading day.
After having been unable to move lower than 47.25 in the previous session, Fastenal found buyers again around the same price level today at 47.13.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 47.96 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Fastenal. Out of 78 times, FAST closed higher 52.56% 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 64.10% with an average market move of 0.95%.