Chart of the Day: Axon Took a Hit. Now What?
Here's where the worries lie as well as an encouraging sign.
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There is some worry about Axon Enterprise (AXON) as it relates to the chart and technicals.
The stock is in a bearish condition that is warning us of another leg lower. The support zone that held up in early fall has gone by the wayside and is now resistance.
Money flow has been deteriorating for months. Indeed, a peak in June on the Chaikin Money Flow (bottom pane) tells us big money is exiting the name. Without that support it makes it very difficult for the stock to move higher.
Still, recent signs of holding the low on that huge down move two weeks ago are encouraging. The stock is just not moving upward yet, though.
At this point, a nice long basing period would be ideal. Earnings won't be out for about a month and without any bad news we could see this stock rising again, but it won't be easy.
We like Axon Enterprise in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long AXON.
