Fastenal (FAST: NASDAQ)
Fastenal (FAST) recently reported a 2.4% year-over-year increase in third-quarter sales, meeting analyst expectations. However, the company exceeded Wall Street estimates on the bottom line due to a better-than-expected operating profit margin. Fastenal’s expansion efforts with its Onsites initiative are progressing well, aiming for 400 additions per year, and it is on track to achieve about 350 additions this year. Additionally, the company anticipates signing between 23,000-25,000 Managed End-User (MEU) contracts this year, incorporating their FASTBin and FASTVend products.
Given these positive developments, we are bullish on FAST, particularly if the stock remains above the $53.00-$54.00 level. The upside target for FAST is set at $81.00-$82.00. This optimistic outlook is based on the company’s strategic initiatives, solid financial performance, and ongoing expansion efforts in the industrial and construction supplies market.
Eldorado Gold (EGO: NYSE)
Eldorado Gold (EGO), a prominent precious metal miner operating in Turkey, Canada, Greece, and Romania, showcased impressive growth in the first quarter of 2023. EGO reported a substantial 21% year-over-year increase in production during this period. This rise in production enabled the company to distribute costs across more ounces, resulting in a reduction in all-in sustaining costs from $1,346 per ounce in Q1 2022 to $1,184 in Q1 2023. Additionally, the average realized price per ounce of gold sold saw an uptick, reaching $1,932 compared to $1,889 in the previous year.
With the current production target set between 475,000 to 515,000 ounces of gold, there are optimistic expectations for further growth as the year progresses. These positive indicators align with the bullish sentiment surrounding EGO. We are optimistic about the company’s prospects, particularly if the stock remains above the $9.50-$9.75 level. The upside target for EGO is anticipated to be in the range of $14.00-$15.00, reflecting the positive trajectory and potential for further gains.
U.S. Dollar (DXY)
The DXY (US Dollar Currency Index) experienced a notable drop on Friday, declining from slightly above 106.00 to 105.00 and simultaneously breaking the five-week-old support at 105.50. Although currently hovering around the support level, there is a prevailing sentiment that the DXY will continue its downward trend over the next few weeks, albeit not in a linear fashion.
Market analysis suggests that the DXY might initially see a brief upward movement, potentially testing the break of the 105.50 level before resuming its downward trajectory. In the event that the 105.00 support level is breached, the next significant support is expected at 103.50, followed by another support level around 101.00. These observations indicate a cautious outlook for the US dollar in the coming weeks.
ADA (Cardano) has recently reached the upper boundary of its range, hitting the resistance area at $0.35. However, after a strong upward movement in the past two weeks, there’s a possibility of a correction on the horizon. If ADA faces rejection and experiences a decline, the immediate support level is at the range low of $0.33. Further downside movement could lead to a test of the $0.29 – $0.30 region.
On the other hand, if ADA manages to break above the $0.35 resistance level, the next hurdle lies in the range of $0.37 – $0.39. Traders are advised to watch the price action closely to gauge the cryptocurrency’s next move within this price range.