EarningsBeats Digest July 31, 2020

Published: Fri, 07/31/20

EarningsBeats.com Digest for July 31, 2020

Check out our Membership Options!

Did you know you could sign up for a 30 day trial membership for NO COST?

Just click on the link below to learn more.

Click here!

This Defense Stock Has Reached A Definitive Support Zone

Let me first say that defense stocks ($DJUSDN) have not provided great support levels. The group has been very weak on a relative basis. Individually, we've seen some relative strength, but it's been very isolated. One stock that has shown relative strength has been Axon Enterprise (AAXN). The overall relative strength has been solid, but July has definitely been an issue. Here's the current technical view for AAXN:

Price and gap support reside close to 83 and AAXN's recent 15% price descent opens up a solid reward to risk entry opportunity. I'd be careful if support near 82.50 is lost. In the meantime, pullbacks into key price support from 82.50-85.00 presents a solid trading opportunity. It's very aggressive, but AeroVironment (AVAV) is another aggressive stock pick from his area of the market. A close above 83 would signal a very solid breakout here.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.