Stock Of The Day: Is More Pain Ahead For Axon?

Core Viewpoint - Axon Enterprise, Inc. is experiencing a downtrend in its stock price, which began after a downgrade, and is currently testing support levels that may break, leading to a potential rapid decline in stock price [1][5]. Group 1: Stock Performance - The stock is trading lower, continuing a downtrend that started on Wednesday after a downgrade [1]. - Axon shares opened at $540 on November 8 and closed above$600, indicating a significant price movement [4]. - The stock may gap down from previous levels, specifically from $540 to$465.50, if support breaks [6]. Group 2: Market Psychology - Support levels in the market often form due to psychological factors, particularly seller's remorse, where sellers regret their decision to sell as the stock price increases [2]. - Many sellers who sold at lower prices are placing buy orders at those same prices, contributing to the formation of support [5]. - The concentration of buy orders from regretful sellers can create a floor under the stock price, but if this support is broken, the stock may fall quickly [5].