Despite all the controversy over Taser’s stun gun, the action in the chart continues to paint a bullish picture and today’s action would indicate another significant price surge is in the works as the stock is breaking out of a symmetrical triangle formation with heavy volume.  The pattern of big buying followed by decreasing sell volume that began in March (see past posts on TASR for a closer look by clicking CANSLIM Stocks to the left) continues and indicates good demand for the stock.  (click image for larger display)

After the recent 2 for 1 stock split (which was the third in the last year), the increase in the supply of shares can create significant pressure in the stock price if the increase in supply isn’t tempered by a subsequent pick up in demand.  A company will split its stock to decrease the price, which in theory makes it more attractive to the average investor.  But it also makes it easier for institutions to initiate new positions or add to their current holdings.  A small float (supply of shares not held by insiders available for trading) may squeeze out institutions that would like to initiate a position or add to an existing one.  So, if the demand is there, the increase in supply can be beneficial.  Based on today’s action, that appears to be the case.