Axon Enterprise Rebounds 0.59% As Technicals Signal Bullish Reversal At 730 Support

Candlestick Theory
Axon Enterprise’s recent price action reveals critical technical structure. The session ending August 13, 2025, formed a hammer pattern at $731.74 (low) after a steep decline, closing near $765.52—signaling potential bullish reversal confirmation. Subsequent sessions established $730-$740 as a robust support zone, aligning with the August 4 low of $736.95. Resistance is evident near $780-$790, reinforced by the August 14 high of $764.26 and reinforced by the 50-day moving average proximity. A piercing pattern emerged on August 15, closing at $754.24 (up 0.59%) after testing $739.01, indicating buying pressure. The August 5 shooting star at $885.91 remains a major resistance reference.
Moving Average Theory
The moving average configuration shows a precarious short-term trend. The 50-day MA (approximately $760) is being tested as dynamic resistance, while the 100-day MA (near $700) and 200-day MA (~$580) maintain upward slopes—confirming the longer-term bullish trend. The current price ($754.24) trading below the 50-day MA suggests near-term bearish pressure. A sustained break above the 50-day MA is needed to restore bullish momentum. The 100/200-day MAs' golden cross earlier this year continues to support the primary uptrend.
MACD & KDJ Indicators
MACD (12,26,9) resides in bearish territory but shows early signs of convergence. The August 13 low ($731.74) coincided with a bullish MACD histogram divergence, suggesting waning downward momentum. KDJ’s K-line (9-period) dipped below 20 on August 12-13, signaling oversold conditions, and has since rebounded above 30. While KDJ’s climb above 30 hints at recovery potential, it remains below the bullish threshold of 50, requiring confirmation. Both oscillators align in suggesting bearish exhaustion but lack decisive reversal signals.
Bollinger Bands
Bollinger Bands (20-day, 2σ) reflect elevated volatility contraction. The bands expanded sharply during the August 5-12 selloff but have since narrowed, indicating reduced volatility and potential consolidation. The August 13 close near the lower band ($731.74) triggered a rebound, and the price now trades between the lower and middle bands. A close above the middle band (~$770) would signal strengthening bullish control, while failure risks retesting the lower band near $725.
Volume-Price Relationship
Volume analysis validates bearish sentiment dominance. The August 5 peak ($885.91) occurred alongside extreme volume (2.53M shares), signaling climactic selling that exhausted buyers. Subsequent declines on August 12-13 saw high volume (999K–1.13M shares), confirming capitulation. However, the rebound since August 14 has occurred on diminishing volume (583K shares on August 15), raising sustainability concerns. A bullish reversal requires volume expansion above the 20-day average (~600K shares).
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold territory (32 on August 13) to its current reading of 48, reflecting waning bearish momentum. The oversold dip followed by a higher low in RSI against a lower price low on August 13 established bullish divergence. While RSI remains below the neutral 50 level, its recovery trajectory suggests improving momentum. A break above 50 would support a near-term bullish bias, though its current position warrants caution.
Fibonacci Retracement
Applying Fibonacci retracement to the corrective swing from the August 5 high ($885.91) to August 13 low ($731.74) reveals key levels. The 38.2% retracement at $790.64 and the 50% level at $808.83 serve as immediate resistance thresholds. The August 15 high ($762) tested the 23.6% retracement ($767), which now acts as a near-term barrier. Confluence exists at the 61.8% retracement ($776.90) with the 50-day MA, creating a significant resistance zone. A breakout above $790.64 would open the path to $826.
Confluence and Divergence Notes
Confluence is observed at $730-$740, where candlestick support, the lower Bollinger Band, and the 100-day MA intersect, creating a robust demand zone. Divergence is evident in RSI and MACD, both showing bullish momentum shifts against price declines during the August 10-13 selloff. However, the KDJ’s slower recovery and weak volume during the rebound introduce caution. The convergence of Fibonacci resistance ($767-$776) with the 50-day MA highlights a critical breakout zone for bullish confirmation.
Probabilistically, these factors collectively suggest a basing formation near support, but decisive volume-backed closes above $780 are required to invalidate short-term bearish pressure.