The VoSI VooDoo Report
Offbeat Ideas and Commentary from the Depths of Gil's Trading Notes
Instead of chasing breakouts in this market and setting yourself up for failure, often its much better to take an opportunistic approach. In this case, Axon Enterprises (AAXN) broke out over a week ago and has since floundered on a failed breakout. The pullback to the 10-dma and 20-dema as volume recedes makes this more interesting, and a long entry here can be implemented using the moving averages or the lows of the day as a selling guide. Volume is running about -29% below average for this time of the day so could continue to dry up, setting up a possible voodoo pullback to the 10-dma/20-dema where risk can be controlled vs. buying breakouts and then using a 7-8% stop-loss.
VoSI VooDoo(TM) Report - Axon Enterprises (AAXN)
|19 May 2020 13:15 ET
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