Next up guys, a couple losers on the stock market today. We've got Axon Enterprises down 8.52%. You may have heard of these folks before. They do cover the body cameras on police officers as well as I potentially think security officers too, but mainly known for those body cams.
And so, what do you do if you come to a chart like this and there's nothing on it, guys? There's, you know, you have a couple ups and down moves. What do you do to start analyzing the chart?
Well, one, as we've already touched on, we could throw throw on the simple moving averages and see that whoa, all right, we've got potential support coming in with the 200 daily moving average here at $506, but what's happened in the last couple days with price getting under both the 20 and the 50 is not necessarily that good.
You can see it's a failed near-term bull flag breakout. So, we're starting to move down pretty quickly. All right. Well, where can price go if and when it gets through the 200 moving average?
Well, then I just simply go back further on the chart, really get a good view as to what's going on on this chart. And if I go all the way back and I start to realize, all right, well, I can connect a couple different levels here with trend lines.
We go back to the April 2020 COVID low, guys, and we can see this comes in all the way down here at $180. Well, that seems a little bit too far. That doesn't make too much sense.
All right, that could be a worst-case scenario, right? Maybe Axon does not become the number one police officer support equipment, but this is more realistic. Go to June of 2022, connect this low pivot to low pivot, and then now we have a secondary level of support should and if this 200 moving average get overtaken by price moving down lower.
Now, you can see how that lines up right here with all the support at $400. It is a smooth $100 lower, but it's certainly a possibility for price to continue with the failed breakout move at least in the near term.
Now, I flick it to the weekly time frame, that 200 moving average could provide some relief just a tad bit sooner, but this is a really interesting play, one of which that has been on the verge of breaking down, trying to save itself with an inverse head and shoulders pattern, but at least in the near term, that has moved to the downside and failed on this chart.
I'll be looking for more support sub $450 on this chart of Axon in the near future.