Chart of the Day: Axon’s Flat Base Gives Bulls Some Hope
It’s been a tough year for Axon Enterprise ($AXON). A huge surge twice, but a few stumbles along the way and now a period of disinterest in the stock. It almost seems as if the market knows the coming earnings and forecast will just be ho-hum. It could be correct, but with the nice base structure in place that occurred over the last couple of months we are inclined to believe the lows are in.
You can see the support at the $400 level, which multiple times sellers tried to break but to no avail. That is an important point. Now, it does not guarantee the price will hold but the odds favor this to happen. Price is bearish, and the pink candles dictate the condition on the GoNoGo composite of indicators.
We do see some positives in the indicators. The MACD is on a buy signal and momentum is starting to exert itself. Money flow is positive too. Big money is quietly moving in, and we’re seeing the same thing we do with price action at the $400 level.
Axon earnings are out later in the week. This name often surprises big to the upside (much like we saw in May).
We like Axon Enterprise in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”
More Pro Portfolio:
- Increasing Exposure to This Chip Name as Shortage Endures
- Tracking 49 Signals Across 11 Portfolio Investment Themes
- October Monthly Roundup: Navigating the Tech Pullback. What We Bought and Our Shopping List.
At the time of publication, TheStreet Pro Portfolio was long AXON.
