After months of steady upside momentum, Fastenal Company (FAST) witnessed a sharp gap-down decline, catching many traders off guard. If we plot the monthly CPR (Central Pivot Range), it clearly shows how the stock’s consistent openings and closings above the mCPR have supported this extended bullish move. This is a textbook behavior of a strong trending market, something I have explained in detail here: How I Identify Strong Market Trends Using Pivot Points.
This recent fall, though steep, may actually offer an opportunity for long-term bulls rather than a reason to panic. When we look at the chart through the lens of multi-timeframe pivot analysis, the price is now approaching the previous quarter’s low near 41.75, which serves as a critical reference level. A sustained reaction here will tell us whether buyers are willing to defend this zone. If the selling pressure extends, the next important areas to monitor are around 39.53 and 37.31, both of which are key regions for potential price acceptance and accumulation. These levels often act as magnets where the market pauses before resuming the dominant trend. You can explore this concept further in my post on Multi-Timeframe Pivot Points.
When we evaluate the overall structure across higher timeframes, the broader picture for FAST still points to a bullish trend. A pullback toward the monthly CPR usually turns into a buying opportunity, provided we first observe signs of price acceptance around these levels. As I’ve discussed in my framework on identifying strong markets, it’s essential to wait for confirmation instead of assuming continuation prematurely.
In summary, while the sudden drop may appear concerning on the surface, it fits well within the context of a larger uptrend. The zones around 41.75, 39.53, and 37.31 should be watched closely for signs of stabilization. Any meaningful acceptance or buying interest near these areas could set the stage for the next leg higher in FAST.
Cheers !!
Arup MSP
Creator of Pivot Mastery (The Practical Way to Understand Market Context)
Follow on X – https://x.com/MSP_Traders
