$FSLY: Hey Fastly, speed things up a little bit. (January 3, 2020)
EM
This is Scott with your Free Chart of the Day. I want to take a look at Fastly ( NYSE: FSLY ). Fastly ( NYSE: FSLY ) has been trading for less than 200-days and it really has kind of not been a fast trade, it has been, probably, a sleepy trade if you have been watching it. The stock has really been in kind of a downtrend since September but it looks like it may have found somewhat of a bottom.
In the last two sessions the stock gapped up above the 50-day moving average after getting an upgrade from an analyst that was sitting on the sidelines with the stock not really covering it. Ever since then the stock has held that gap and just kind of building a little bit of a flag pattern here; just sideways consolidation, holding these gains.
I think there are two potential trades here to watch for on Fastly ( NYSE: FSLY ). The first one is a pullback to the 50-day moving average. A pullback to right around $20.66, something along those lines just to test this breakout and then your stop would be just below the 50-day moving average so you are only risking about 2 percent if you do buy this on a pullback.
Another setup could be a break of today’s intraday high. With a move above 22.10 I would look for at least a test of this high right there, right around $24.00. That’s about 12 percent, not a bad trade, good for a cup of coffee, So there you go, two potential setups with Fastly ( NYSE: FSLY ). I hope this works out for you.
Free Chart