October 10 Chart of the Day - Fastenal
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Industrial supplier Fastenal (FAST) reports earnings before market open on Friday.
This quarter, analysts are reportedly expecting Fastenal’s revenue to grow 3.2% year on year to $1.90 billion, in line with the 2.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at blah, blah, blah...
The only thing we want to see is the price action technical analysis for their chart.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $79.04 all time high (ATH) earlier this year price fell swiftly over the next several months all the way down below $65 about three months ago.
Since then, price has bounced up and seemingly deciding whether to continue upwards or fall back to the downside all while churning inside a range roughly between $65 - $72 area.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the recent bounce back up. The bulls would like to make a series of higher highs and higher lows but that remains to be seen.
Trading around $70.25 earlier today price may be attempting to continue upwards towards its ATH
The market is implying about a $5.35 move in either direction as marked on the weekly chart by this Friday October 11th. Share price has risen during the week of earnings 5 of the last 8 quarters.
Could earnings be the catalyst that pushes price to its next higher high or will price continue fading?
Should price decide to fall to the downside and make a new lower low price could possibly want to eventually revisit $56-$58 area...
One thing for sure, price rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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