Chart of the Day: Axon Needs to Step Up to the Plate
Earnings are out Tuesday evening and expectations are low. Perhaps they can knock it out of the park.
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One of our "spicier" names is Axon Enterprise AXON, which has pulled down a bit after making a run at all-time highs. That move was caught short last week after being doused by the market avalanche of selling. But we have seen pullback in AXON before and often prior to earnings it creates a nice setup. We rate the shares a One in TheStreet Pro portfolio.
AXON stock recently successfully tested the 200-day moving average, with good volume trends leading up to it, but a storm of sellers hit the name late last week. We are looking for a nice bounce and recovery, but above $306 it would be a game changer, and we could certainly see that run towards the highs at $344 commence.
Indicators are not bullish, though, so there's quite a bit of negatives to overcome. Moving Average Convergence (MACD) has rolled over as has stochastics (momentum, pane 4), but we could see a bit more pickup if the stock moves upward later this week.
Money flow is challenged (pane 5), but we have seen higher volume to the downside of late. The key here is if that 200-day moving average holds firm. We believe it will.
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At the time of publication, TheStreet Pro portfolio was long AXON.
