Chart of the Day: Axon Gets a Lift From a ‘Known’ Source
Trust the chart, not the rumors.
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Rumors, stories and innuendo always seem to get the investing and trading crowd excited about a big stock move. On Monday we saw such a move in Axon Enterprise (AXON).
It’s nothing related to the company specifically, but a CNBC report suggested President Donald Trump bought up to $5 million dollars worth of stock recently (and before Immigration and Customs Enforcement issued an order to buy tasers, Axon’s premiere product). We are not passing judgment here, and, no doubt, if this story is untrue then Axon is likely to lose those nice gains of over 10%. These things happen quite a lot lately, we just need to be aware at all times, prepared to take some profits if the opportunity is in front of us.
As for the chart, we see much improvement over the past few sessions, with some higher-lows in place. Notice the candles have again turned blue, which is bullish on the GoNoGo composite of indicators.
After a very quiet period where Axon built a nice, flat base (see big arrow going sideways) the stock is now on the move. The Monday close tied the highs for the month, and a much bigger move now would put the stock on a trajectory to move towards the $600 level.
The moving average convergence divergence, as seen on the second pane, is on a buy signal. Money flow, at the bottom of the chart, remains robust. And the relative strength, in the middle of the chart, is impressive. Stochastics (momentum) are on the move and not yet overbought, which means room to move higher.
We like Axon Enterprise in TheStreet Pro Portfolio and rate it a “One,” buy at anytime.
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At the time of publication, TheStreet Pro Portfolio was long AXON.
