Fastenal seems to have broken down from a rising wedge formed on an all-time high. It's under the 20-day MA and the 50-day MA. This is a relatively low volume trader, so it's not really someting that we want to play unless there is something compelling. What's interesting here is that this might be a small congestion before moving lower to test the downside target of the base of the wedge at the December 5, 2003 low of 45.80.
The sell short alarm is triggered on break of yesterday's inside bar, with a suggested initial stop loss at the day's high, whatever it might be at the time the short sale is triggered. It should be able to hit the first downside target of the February 2 swing low in less than two days, using the 50% rule of thumb. Otherwise, it would be moving too slowly.
04.02.05 10:22 #