AAXN falls to lowest close since June 19th
Axon Enterprise Inc. (AAXN) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AAXN ended Monday at 90.77 tanking $5.14 (-5.36%), significantly underperforming the S&P 500 (-0.94%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on June 11th, AAXN actually gained 4.53% on the following trading day. Today's close at 90.77 marks the lowest recorded closing price since June 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 95.34, Axon Enterprise confirmed its breakout through the previous session low after trading up to $5.06 below it intraday.
Daily Candlestick Chart (AAXN as at Jul 13, 2020):
Monday's trading range has been $6.89 (7.09%), that's far above the last trading month's daily average range of $4.72. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AAXN.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle.
The stock closed back below the 20-day moving average at 95.68 for the first time since July 7th.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test June's close-by low at 82.80.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Axon Enterprise. Out of 58 times, AAXN closed higher 60.34% 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 63.79% with an average market move of 3.63%.