Fastenal Stock Staring Up at Key Resistance

FAST gapped below the $50 level last week

Jul 27, 2022 at 2:33 PM
facebook twitter linkedin


Shares of Fastenal Company (NASDAQ:FAST) gapped lower after a July 13 earnings report, before rallying back to their February lows and settling beneath the round $50 level. What's more, the equity went ex-dividend on July 16, and price action was weak after its last two ex-dividend dates. With this setup in mind, now seems like ideal time to bet on FAST's next leg lower.

 


The security's 12-month consensus price target of $48.43 could also represent a level of resistance. Further, the shares are facing headwinds from growing short interest after five years of covering.

Our recommended November put has a leverage ratio of 6, and will double on a 14.8% fall in the underlying stock.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this FAST commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!