Chart of the Day: Axon's Summer Fun May Not Be Over
The software and security firm is showing tremendous relative strength.
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What a summer it has been for TheStreet Pro Portfolio holding Axon Enterprise AXON. The stock vaulted higher in August following stellar earnings and has not looked back.
And after a month's worth of sideways activity the stock now looks ready to breakout in a big way. We see at least the $400 level once the old high of $378 is taken out, and then more upside following.
Why so bullish?
The chart is clearly giving the signals, with a pending MACD (moving average convergence/divergence) bull signal (within days), and momentum pushing higher now with the stochastics in "jam-up" mode. The candles in the top pane are back to blue, which is strongly bullish, but what really has our interest are the last two sessions of strong price action along with heavy volume.
That combination is powerful regardless of where the stock is trading, but in this case it happens to be right near all-time highs. What's it mean? Big buyers continue to add shares, believing the stock goes up over the long term. We enjoy their company!
We rate Axon Enterprise a Two in TheStreet Pro Portfolio, or stockpile on pullbacks.
At the time of publication, TheStreet Pro Portfolio was long AXON.
