Chart of the Day: Getting Impatient With Axon? Hang in There…
The stock has been moving sideways since earnings. That’s not a bad thing.
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We believe in the philosophy in technical analysis that “the longer the base the higher the space.” Legendary technician Louise Yamada came up with that phrase because she noticed for years that stocks basing (going sideways in a tight range) would eventually explode, often moving higher as the compression (tightness) builds more power. It makes sense, and stocks have been left for “dead” while the base, long forgotten, then suddenly rises up like a phoenix to become relevant. Intel (INTC) is a recent example.
For us, we look at Axon Enterprise (AXON) as a great case study in patience. No doubt it has been frustrating to watch this stock moving sideways with no sign of breaking out. But eventually that will happen, unannounced of course, and will surprise the crowd. Is that day near? It just might be, if the indicators can keep moving up.
MACD is on a buy signal, money flow is positive and moving nicely to the upside here while stochastics is also bullish. The parabolic SAR (stop and reverse system) is bullish too; we have teal candles, which is cautiously bullish, but we don’t have a solid breakout — YET. As the stock moves further towards resistance at $500 we may see more volume flow into Axon.
We like Axon Enterprise in TheStreet Pro Portfolio and rate it One, or “buy at anytime.”
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At the time of publication, TheStreet Pro Portfolio was long AXON.
