AXON daily possible bullish moves but need to consolidate first
THE CONSISTENT TRADES analyze AXON as a bullish /strong fundamental stock and therefore would be traded only in a long position.
AXON had two very strong weeks behind itself. Price found resistance at the recent top and start to consolidate on this level.
Volume is increasing which is not the best option for the bulls but is not bearish for now. Only a stronger/bigger red candle with a lot of volume would indicate the possibility of moving down.
Price is above all major MA which is bullish.
RSI is overbought and needs to cool down for future healthy move-up.
MACD formed bearish divergences and needs to continue to drop toward the zero line to cool down.
Overall: AXON is a very bullish and strong fundamental stock, however at the moment is at its extreme and needs to cool down a little bit. The perfect option for the bull would be for the price to drop at 0.38 Fib or 0.5 and then continue to pop up again. In that case, would form both Cap and Handle patter and ascending triangle which both are bullish. Significant pop above the blue dotted line with volume would trigger a long position, otherize we should wait a little bit for the cooling process before a new leg up and break out of this resistance area.
AXON had two very strong weeks behind itself. Price found resistance at the recent top and start to consolidate on this level.
Volume is increasing which is not the best option for the bulls but is not bearish for now. Only a stronger/bigger red candle with a lot of volume would indicate the possibility of moving down.
Price is above all major MA which is bullish.
RSI is overbought and needs to cool down for future healthy move-up.
MACD formed bearish divergences and needs to continue to drop toward the zero line to cool down.
Overall: AXON is a very bullish and strong fundamental stock, however at the moment is at its extreme and needs to cool down a little bit. The perfect option for the bull would be for the price to drop at 0.38 Fib or 0.5 and then continue to pop up again. In that case, would form both Cap and Handle patter and ascending triangle which both are bullish. Significant pop above the blue dotted line with volume would trigger a long position, otherize we should wait a little bit for the cooling process before a new leg up and break out of this resistance area.
Consistency is the key of success....