Here’s your trade on Axon $AXON – February 7, 2024
This is Dan Fitzpatrick, StockMarketMentor.com. I just want to take a quick look at Axon ( NASDAQ: AXON ).
Axon ( NASDAQ: AXON ), we put this on the Active Trade List a few days ago. I was just anticipating a breakout. We got in at 256.00, basically 257.00, so we’re up $12.00; we’re up nicely today. What I like about this is, that it has been in a squeeze, these Bollinger Bands are just starting to expand, and that’s what you want to see.
I’m doing this with over an hour and 45 minutes remaining in the trading day and this is already on heavier than average volume. I didn’t buy a huge position but I had some and I added to it today when the stock gapped up just slightly, but then just kept going. You can see it on the intraday chart. The 5-minute chart started to jump and it just hasn’t really turned back.
During the middle part of the day, of course, you’re going to get low volume because that is just the way stocks trade intraday. But as we do go into the afternoon we’re seeing more buying coming in. I like this stock, among other reasons, and for that reason intraday I think this stock is really going to work.
I actually think that it is just getting started. We’ve got a few stocks on the ATI that are like this, where a nice breakout from a long base. A nice move higher and then another consolidation, so this looks to me like it’s just starting the next leg higher.
I think you want to be a buyer here, it would be nice to be able to get it or have been able to get it at a little bit lower price. It is only up 4 percent today so it seems like a lot, but from the breakout, that’s about 3.2 percent. So you are maybe a little bit late in getting in but not too late.
You can see where our stop is, we got in a few days ago so we could afford to have a lower stop. I’m not going to suggest a higher stop if you are buying here because I don’t know what your situation is. I will just say, these are the kinds of stocks that you want to look at.
I’m only comparing this, with respect to the chart and really in nothing else. But you saw the same type of thing with NVIDIA ( NASDAQ: NVDA ) here, and some other stocks as well. It seriously does pay to recognize these types of patterns and not allow yourself to get shaken out too soon.
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