Fastenal does exactly what the name says it does, that is make metal bolts, screws, and all sorts of other fasteners. Not exactly a sexy business but, as it happens, it was the best performing stock since 1987 or something like that, better even than AAPL , PCLN or AZO (see below). Using EW for stocks that are on their way to the moon is always a little difficult as no chart exists. This is the same reason why shorting stocks can be a lot more dangerous than simple owning them; your risk is unlimited. Nevertheless , and despite being dead wrong on Autozone, here is a try. Using a semi-log chart it is clear that the stock stayed in a relatively narrow channel for the past 20+ years and just recently hit the top line for a third time.
Looking at the normal chart it is easy (even if perhaps incorrect) to come up with a plausible 5 wave count. Looking forward as they say, EW would call for a drop to the 4th wave of previous degree at about $15. A bounce off the trend-line now would be “normal” but not a certainty. If you own it we suggest you do so with a very,very, tight stop.
