Axon: #PowerStocks Series Pick Of The Week (July 2026)

This stock took off right at the start and flew by 50% in 3 days upon listing. But it quickly tumbled and returned. Its share price now stands 3.5% lower from its 1st day of listing. In case you're wondering, I'm referring to the shares of SpaceX. When a stock is new to the market, there's no price discovery, which prevents me from performing the holistic analysis that I prefer. Couple this with the media attention it receives, and emotions take charge. Allowing emotions to lead the way is usually a fatal misstep that traders must avoid to achieve longevity in the markets. Over the weekend, I've identified a stock that has been around for 25 years. Its performance and behavior are predictable, providing the consistency required in a volatile market environment. But before I share my findings and analysis on this week's #PowerStocks pick, let's discover how last week's stock performed - Arcus Biosciences (RCUS).

Review Of Last Week's Pick Of The Week

Arcus Biosciences (RCUS) was last week's #PowerStocks pick. It's a relatively young, growing clinical-stage biopharmaceutical company. Despite being worth over $4b in market capitalization, its shares have the ability to explode higher repeatedly. After rising 35.8% in 2 weeks, its share price began pulling back to its support area around $28.20. Am I still interested in buying its shares for an explosive swing trade? Yes, I am! But am I going to buy its shares right away? Head over to my Telegram Channel to find out! Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Axon (AXON) Worth It?

Source: axon.com

Axon plays an integral role in the security and defense industry by equipping security personnel with Taser guns, robots, drones, and more. With its size of operations, Axon enjoys an enviable market capitalization of over $45b. While the shares of many large companies are lethargic, Axon's aren't. Its share price is capable of bursting upwards repeatedly, between 6.4% and 65.2%, 17 times in just the past 11 months! After rising by 65.2% in 3 weeks, a pullback is finally here. Could this be a fantastic opportunity to buy its shares and ride its next big upmove? What's my game plan? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Axon (AXON)

What is the 1st thing I'd want to know from this analysis? I want to identify the trend of Axon's share price. Why? Knowing the trend of its shares allows me to determine whether I'd look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability. Given the mighty uptrend in Axon's share price, I'd like to identify a buying opportunity. Great! But that's not all. I'll compare the performance of the S&P 500 (black) against Axon's shares (blue). A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder. While the S&P 500 had climbed 11.1% in the past 3 months, the shares of Axon shot up by more than 63% in the same time period! That's an eye-popping outperformance of almost 6x! I want to buy its shares for an explosive swing trade. But is this all to analyze?

How Explosive Is Axon (AXON)?

No, there's still more to analyze to boost my chances of success. Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast. Have the shares of Axon been exploding upwards consistently? Marking out the explosive upmoves for the past 11 months has left me stunned. There are 17 explosive upmoves, and each of them measures between 6.4% and 65.2%! What's even more impressive? Axon is 1 of the largest security equipment providers with a massive market capitalization of more than $45b. The share movement of such huge companies is usually more subdued, but not Axon's. Additionally, I appreciate that Axon enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented! Here comes the golden question: Is it time to buy the shares of Axon for an explosive swing trade?

Key Price Levels

As with many things in life, timing is key. Trading is no exception. Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you'll doubt yourself even when a fantastic trading opportunity arises straight from under your nose! Is it time to buy the shares of Axon for an explosive swing trade? You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that's what I've done in the chart above. I've marked out a strong support area around $560. Because its shares have soared over 65% in 3 weeks, I think that its shares could continue to pull back. Once this happens, I'll be on the lookout for a bounce off $560 before buying its shares to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!