FSLY: Post Collapse Recovery detected on 9 Jun 2026

FSLY is forming a post-collapse recovery pattern after record Q1 2026 revenue growth of 20% year-over-year and raised 2026 guidance. The stock currently trades at $19.38, positioned between key support at $16.01 and resistance at $22.05. Structure score of 12.84/15 and volume score of 11.95/12 indicate solid pattern formation with institutional participation. Breakout score of 11.15/13 suggests moderate strength. The overall pattern quality score of 70.94/98 reflects a legitimate technical setup with 69.42% historical win probability.

Fastly delivered record Q1 2026 revenue of $173 million with record gross margin of 62.5% and accelerated 47% year-over-year security revenue growth. The performance reflects expansion within installed base and robust new business wins, enabling management to raise 2026 guidance. Management noted Q4 2025 marked an inflection in Fastly's growth, with AI anticipated as an increasing tailwind for 2026. The stock's 18.75% two-week gain suggests positive sentiment shift coinciding with earnings announcements. This fundamental momentum supports technical recovery after the previous drawdown.

A successful post-collapse recovery breakout would target $20.36 (conservative target), with initial resistance at $22.05. Volume confirmation is critical—current volume at 6.27M shares is tracking 0.76x the 20-day average, so sustained volume above 8.2M on any breakout move validates the pattern. Invalidation occurs below key support at $16.01; a close below that level would signal the recovery failed. With 69.42% win probability, the setup indicates favorable odds for continuation if resistance breaks on elevated volume. The pattern suggests 4.9% upside to conservative target from current levels.

Recent litigation filings dating to mid-2024 against company officers and directors remain pending in Northern District of California courts. RSI at 47.99 shows no overbought extremes, but current volume at 76% of average is below historical norms—thin volume during breakouts increases whipsaw risk. Beta of 0.86 provides some downside protection in sector weakness. The stock remains 44.34% below its 52-week high, suggesting institutional reaccumulation is incomplete. A pullback toward $16.01 support before confirmed breakout is possible if market sentiment shifts or near-term profit-taking emerges.

We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.