AAXN breaks above 100-day moving average for the first time since March 6th
Axon Enterprise Inc. (AAXN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AAXN finished Thursday at 76.52 gaining $5.37 (7.55%) on low volume, significantly outperforming the S&P 500 (6.24%). Today's close at 76.52 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 74.09, the market confirmed its breakout through the previous session high after trading up to $3.76 above it intraday.
Daily Candlestick Chart (AAXN as at Mar 26, 2020):
Thursday's trading range has been $5.54 (7.63%), that's slightly below the last trading month's daily average range of $6.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AAXN.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, AAXN gained 1.89% on the following trading day.
The stock managed to close above the 100-day moving average at 72.55 for the first time since March 6th. Prices are trading close to the key technical resistance level at 77.95 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to March's high at 83.48, upside momentum could speed up should Axon Enterprise mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Axon Enterprise. Out of 46 times, AAXN closed higher 52.17% 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 73.91% with an average market move of 4.29%.