Fastenal is prepping to race away higher

• Posted by Greg Harmon
• on February 16th, 2016

Fastenal, $FAST, is a wholesale distributor of industrial and construction supplies around the world. But their stock looks more like the Ford Fusion Nascar that Ricky Stenhouse Jr. drives sponsored by them: Fast and ready for action.

I noticed the stock back in mid December as it was making a higher high with good momentum heading into year end. Unfortunately it could not hold onto that break and fell back. A trip to pit row. The result though was a double bottom and move back higher quickly. Now over that prior break out level and consolidating it is testing a 52 week high.

As it sits idling at the starting line the momentum indicators are bullish and moving higher. The RSI is turning back up after holding at 60 on the consolidation, while the MACD just moves higher. The Bollinger Bands® are also angled higher and open. A move over 44 would be the trigger to get long with a stop under 42.

The first target would be the December 2014 high at 48 and over that would be a major rebound and look for a return to 52, a full $17 off of the low print at the start of the year. Hmm, Ricky’s car is number 17, would be fitting huh? Earnings are in the rearview mirror, but perhaps the Daytona 500 will provide the catalyst for a move higher.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through January 2016 and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus