AAXN unable to break through key resistance level
Axon Enterprise Inc. (AAXN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AAXN finished the month 29.19% higher at 98.13 after gaining $2.33 (2.43%) today, outperforming the S&P 500 (1.54%). Closing above Monday's high at 97.25, the share confirmed its breakout through the previous session high after trading up to $3.39 above it intraday.
Daily Candlestick Chart (AAXN as at Jun 30, 2020):
Tuesday's trading range has been $5.44 (5.71%), that's slightly below the last trading month's daily average range of $5.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AAXN.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on April 20th, AAXN lost -8.05% on the following trading day.
Unable to break through the key technical resistance level at 99.62 (R1), the stock closed below it after spiking up to 100.64 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 104.90, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Axon Enterprise. Out of 549 times, AAXN closed higher 50.82% 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 55.19% with an average market move of 1.58%.