AAXN closes lower for the 2nd day in a row
Axon Enterprise Inc. (AAXN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AAXN ended the week 5.14% higher at 87.11 after losing $0.63 (-0.72%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 87.23, the share confirmed its breakout through the previous session low after trading up to $0.53 below it intraday.
Daily Candlestick Chart (AAXN as at Feb 14, 2020):
Friday's trading range has been $1.68 (1.91%), that's far below the last trading month's daily average range of $2.52. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AAXN.
In spite of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on September 9, 2019, AAXN actually gained 1.71% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 89.16 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Axon Enterprise. Out of 421 times, AAXN closed higher 56.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.16% with an average market move of 1.24%.