A top stock broke out fast today! Let’s go over Fastly ($FSLY) slowly. (October 07, 2020)
FSLY
I want to look at Fastly ( NYSE: FSLY ) today; we will go over this slowly. Today the company reported that they entered into an agreement with Google Cloud, which is kind of a big deal, at least I think it is, apparently the market does too. It ran up over 20 percent and a lot of that was at the end of the day.
I don’t know what happened, if nobody knew about it. To be honest with you I didn’t know about it and I had actually looked for news when the stock was running this morning but I couldn’t find it on my news feed. At that point, I am going, okay, well what are you going to do? Not buy a stock because you don’t know why it’s going up or are you just going to say, I think I am going to buy a stock because it’s going up? So I went for the latter and built a pretty decent position and then saw the news.
Well, after hours the thing has gone up another couple percent. Who knows where it’s going to open up tomorrow morning? This is just the real quick point that I wanted to make; this last high here of 117.79, that’s really the level that this thing had to get past in order to move to a new high. So if it backs and fills a little bit, that’s not a big deal, as long as it doesn’t go all the way back but I don’t think it will.
What I am suggesting you do though, instead of zooming in and looking at this and looking at the intraday action and all of that stuff, zoom out. Look at the weekly chart, and what you can see here is that this stock broke out above 100.00, that’s a pretty nice move. That’s a really nice move right out of 100.00. And so as I am seeing this stock, it depends on how you want to measure it, but from this big breakout here, $30.00 up to the top here at $100.00, what’s that, $70.00? I could literally see this stock going another $70.00, from 100.00 up to 170.00 within the next month or two; it’s just that kind of a move.
That’s not a prediction and the stock could reverse tomorrow and make me look like an idiot if I was telling you that it is a prediction. But it’s not; it’s just a measured move estimate that I am looking at to get some kind of sense of where the stock may go. I like this stock; if the stock moves above, we’ll call it 124.00, if it moves above 124.00 tomorrow this is a high-momentum stock and now you are just kind of in it for a trade and you can chase that momentum. It has had a heck of a move and stocks like this, they will tend to settle out a little bit. So watch this stock tomorrow; I’ll be watching it and I know we are going to be on it in the forum, as we were today.
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