Chart of the Day: Axon Needs to Continue to Trend
Recall back in May that Axon Enterprise ($AXON) surprised Wall Street and crushed earnings estimates by a mile. That was the day that launched the stock higher, rising some 70% in less than two months, a staggering move over that short of period. Of course, the chart kind of told us a big move was imminent, the stock having built a nice solid base in the spring, successfully testing lower levels and finally springing up in May.
That seems to be the theme with Axon, a case of extremes — “all or nothing.” However, the chart is actually looking bullish here, with blue and teal candles consistently appearing. Money flow is weak and the MACD is bearish but momentum is starting to pick up. No doubt those who missed that last earnings hit parade are going to try and position themselves for a win.
We often see surprise reports (up or down) come in threes, so with the first one in May we could see another strong report this week. This is just anecdotal, historical evidence that is simply about observation but is quite useful and explanatory at times.
We like Axon in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
More Pro Portfolio:
- Putting Capital to Work in 4 Portfolio Holdings
- 29 Signals We’re Tracking Across 11 Portfolio Strategies
- July Monthly Roundup: Keeping Our Lead After a Wild Ride
At the time of publication, TheStreet Pro Portfolio was long AXON.
