Fastenal Heading For New Highs

Fastenal Heading For New Highs

Fastenal Daily Chart.

Fastenal Company (NASDAQ:) is in full breakout mode today. Shares were up 2.5% at mid-day, placing it near the top spot on the SPX gainers list. This powerful move is driving FAST through a key overhead trendline that links the May/June highs. We expect more upside in the near term.

FAST has been trading in a fairly narrow range since last September. During this consolidation the stock was able to work off weekly and daily overbought MACD levels. The company’s last earnings report, released April 13 before the open, marked an important low.

We consider FAST a fairly low-risk buy near current levels. On the downside, a close back below $51.00 would violate this week’s low, sending a clear warning sign that more sideways action is ahead.

Q1 earnings are due July 13 before the open.

FAST sports a fairly high short interest ratio (5.0).

Note: We have no position.

You can read Gary S. Morrow’s original post here.

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