Chart of the Day: This Holding Is Just Getting Started
The stock fired up post earnings and is looking to make a run at the old highs.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Our entry into Axon Enterprise AXON on 2/25 was a combination of knowledge and luck. There is no way we could have considered a massive 15% move to the upside but history about earnings and confidence following a huge 28% drop told us the odds favored buying this stock on that dip.
Sure enough, earnings and guidance were spectacular and we are once again on our way with some profit gains in Axon. Recall, we bought the stock a few years back and held it patiently, then sold it all, booking a monster triple-digit gain. Back then, we bought the stock just before it started a huge run, so we hope we have done the same this time around.
The AXON chart is not bullish but is improving. We notice the big outside day formed on 2/26 on heavy volume. Buyers are coming back to the stock. Yet, heavy resistance clouds the stock overhead, you can see the drawn-in lines. That is going to be difficult to overcome at least on the first round of tests, so we may see a pullback from there if the $660 level is achieved.
Stochastics (momentum) has our attention. This being a big momentum/growth name, it is this indicator that needs to perk up to get the others moving in the bullish direction. It won't take much to get the price bars (top pane) into teal/blue territory, but we need to see more up sessions for that to confirm.
We like Axon and rate it a Two in TheStreet Pro Portfolio, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long AXON.
