The bigger picture:
AXON spent April bleeding from around 540 to a low of 337, then built a multi-week base around 380-420 during the entire month of May. In late May, it broke out of that base – a clear breakout of the 421 pivot and 447/477 resistance in just a few sessions. The price is now back above the Ichimoku cloud for the first time since the downtrend started. The character of the trend has reversed.
What keeps the bull case alive:
477.64 (R1) is the first thing to hold. Today’s pullback is entirely his fault – breakout retest behavior. Below that, 421.8 (the axis) and the top of the cloud are the true line in the sand. As long as we hold the cloud, the decline represents an opportunity. Recover 506.56 (R2) and the path will open to 548 and then 562, with the 569 area marked as the measured target.
Why I like it here:
Vertical penetration testing is always repeated. Today’s red candle gets rid of the breakout chasers and allows the trade to reset against a clearly defined level. The risk/reward is much better by buying the backtest near 477 than chasing 515.
Plan: Long bias above 477, invalidating daily close inside the cloud. Goals 506, then 548, then 569.
Retest penetrations. Patience pays.
It is not financial advice. Do your own research.
