Axon Enterprise Jumps 3.63% to $735.01 as Technicals Signal Bullish Rebound

Axon Enterprise (AXON) rose 3.63% to $735.01 on July 25, 2025, marking its second consecutive gain with a two-day advance of 4.22%. The session saw trading between $709.82 and $742.23 on volume of 654,210 shares, rebounding from recent consolidation near the $700 psychological level.
Candlestick Theory
The two-day bullish candlestick sequence—featuring higher lows and closes near session highs—suggests waning bearish pressure after testing critical support at $695 (July 24 low). This pattern merits attention as it forms near the year’s primary uptrend line. Immediate resistance converges near $750-$755, validated by multiple failed breakout attempts in mid-July. A sustained close above $755 would invalidate the mid-July breakdown and expose the $780-$800 supply zone. Conversely, failure to hold $695 support risks retesting the $670 swing low from June.
Moving Average Theory
Price remains below the 50-day moving average (approximating $760) but above the ascending 100-day ($710) and 200-day ($580) averages. This configuration signals intact long-term bullish momentum, though the short-term trend exhibits weakness. The 100-day MA has provided dynamic support during pullbacks, while the 50-day MA’s downward slope since early July caps near-term rebounds. A bullish golden cross between the 50-day and 100-day MA appears unlikely in the immediate term given current positioning.
MACD & KDJ Indicators
The MACD histogram shows nascent positive momentum, with the fast line hooking upward toward the signal line after a July 24 trough—a potential bullish crossover precursor. Meanwhile, the KDJ oscillator exited oversold territory (K=28, D=22 on July 23) with a bullish %K-over-%D crossover. While this signals improving momentum, both indicators remain below their midlines, suggesting recovery potential but not yet overbought exhaustion. The July MACD/price positive divergence (higher indicator low vs. lower price low) foreshadowed the current rebound.
Bollinger Bands
July’s volatility contraction narrowed the bands to their tightest range in three months, culminating in a sharp upside expansion on July 25 as price reclaimed the 20-day midline. The successful test of the lower band near $695 established it as reliable support. With bandwidth now expanding, the upper Bollinger Band near $770 becomes the next resistance. Continued closes above the midline would reinforce bullish control.
Volume-Price Relationship
The current rally’s volume profile shows modest improvement over the preceding down days, suggesting lukewarm conviction. Notably, the July 10 breakdown occurred on a 12.9 million share spike—the years highest volume—solidifying the $730-$750 resistance. For the rebound to extend, volume must exceed the 10-day average (800k shares) consistently. The absence of climactic selling during July’s $135 decline suggests distribution may be incomplete.
Relative Strength Index
The 14-day RSI rebounded from near-oversold (34 on July 23) to a neutral 56. This reflects waning downside momentum but lacks the overheating (>70) that typically precedes pullbacks. The RSI’s higher low versus prices lower low in late July formed a bullish divergence, matching the MACD’s warning. Current levels allow room for additional upside before overbought concerns emerge.
Fibonacci Retracement
Applying Fib levels to the $830.21 (June 30 high) to $694.72 (July 23 low) decline shows the rally cleared the 23.6% retracement ($726) and now challenges the 38.2% level ($753). This zone aligns with the $750 candlestick resistance and the 50-day MA, creating a high-probability reversal area. A confirmed break above $753 would target the 50% retracement at $762.50, while rejection here might initiate consolidation between $720-$750.
Confluence and Divergence Observations
The $750-$753 zone represents the strongest technical confluence, merging the 38.2% Fibonacci level, 50-day MA, and horizontal price resistance. Multiple indicators simultaneously generated bullish signals at the $695 low: the RSI/MACD positive divergences coincided with a KDJ oversold crossover and Bollinger Band support touch. However, the volume disparity—lacking conviction during upside vs. distribution on declines—creates a minor divergence that tempers the bullish case. The next critical test is whether price can reclaim the $753 Fib/MA confluence on expanding volume; success would likely accelerate momentum, while failure may prolong the consolidation phase.