Chart of the Week: Fastly
Good morning everybody. Time for our chart of the week for March 4, and we’re gonna show you a little technology name called Fastly. FSLY is the symbol.
Let’s take a look at this chart. It’s showing a really rare bullish condition right now.
As you can see, middle of February, the stock had a huge pop on heavy volume here. And you can see that gap up to about $13 from about $9. And it didn’t quite finish at the highs of the day. But the following day, it certainly did a follow through day, moving nicely higher on good volume.
And then it pulled back a little bit to create your little cup and handle pattern on lower volume, which is what you like to see. And then just the last couple of days, shot out on heavy volume up to the $21 area.
So what did I say just when we got started here that there’s a rare bullish condition? Well, when a stock reaches more than 100% above the 200 day moving average, they say it loses gravity. Remember, moving averages act like a magnet; they pull the stock back in. From high levels, they pull the stock back up from lower levels.
But here’s this 200 day moving avarge at $9. Current stock is at $21. You do the math. 100% above the 200 day moving average would be about $18.22; we’re above there right now. So if it can sustain this a little longer, we could see this stock really run up to about $33-35.
MACD is obviously on a buy signal over here.
This caught people looking in the wrong direction and short covering is happening too.
Stock is overbought on the relative strength.
All the indicators and metrics seem to be bullish on this stock right now.
So listen, go with the momentum. This is a momentum name. And the stock is moving sharply higher. Again, we think it could probably get to $30-35. Seems like a stretch.
But you know what? When momentum is strong on a stock like this and the short selling gets intensified on the way down, as it was back here in the late part of 2025, you get those people having to cover their short position and it creates a big buying storm to the upside.
So that’s Fastly. FSLY is the symbol.
Thanks so much for watching everyone.
