Axon (AAXN) Falls to Key Level at $50
The Tale of the Tape: AAXN has key support at $50. A trader could enter a long position at or around $50 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
Axon Enterprise, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. The company operates through two segments, TASER Weapons, and Software and Sensors.
Take a look at the 1-year chart of Axon (NASDAQ: AAXN) with the added notations:
AAXN has fallen back down to an important level of support at $50 (green). Traders might be able to expect some sort of a bounce from there, but if the $50 level were to break instead, lower prices should follow.
The Tale of the Tape: AAXN has key support at $50. A trader could enter a long position at or around $50 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Good luck!
Christian Tharp, CMT
Good luck!
Christian Tharp, CMT
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