AXON makes a great chart. Starting with the Quarterly, to illustrate its weight in the fact that price has respected the blue channel since 2008. Price coming down off the top of that long term channel, as it is now, could portend a timely trade.
The strong rise the first week of December, put price right in the crosshairs on the Monthly chart. For the downer we’re after, purple reigns.
Those two longer term charts primed us for all there is to see on the Daily chart:
- Price falling from the top of the long term blue channel;
- Price falling below the top of the turquoise channel; and
- Price riding just atop the reigning purple trend line from twenty years ago.
My bet is on the gaps having a big pull, at least the first one. There’s one at 471 and one at 441.
Interestingly, the top of the Ichimoku Cloud, green horizontal, is the same as the top of the gap, fuchsia, at 515. The bottom of the Cloud at 482, red horizontal, is close to the gap closure at 471, fuchsia.
A week or so ago, Tim posted about shorting AXON and I commented that it looked like a good move. Instead, that’s the week price went up. So. Where we are now, it could go like that, or it could pan out on the downside.
