A technical analysis of PALO ALTO NETWORKS INC.

Our stock screener has flagged PALO ALTO NETWORKS INC (NASDAQ:PANW) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:PANW for potential movement.

Deciphering the Technical Picture of NASDAQ:PANW

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, PANW scores 8 out of 10 in our technical rating. Both in the recent history as in the last year, PANW has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that PANW is one of the better performing stocks in the market, outperforming 97% of all stocks. On top of that, PANW also shows a nice and consistent pattern of rising prices.
• PANW is part of the Software industry. There are 278 other stocks in this industry. PANW outperforms 93% of them.
• PANW is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PANW slightly outperforms the market at the moment.

For an up to date full technical analysis you can check the technical report of PANW

How do we evaluate the setup for NASDAQ:PANW?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:PANW exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, PANW also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 259.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 244.17, a Stop Loss order could be placed below this zone.

How can NASDAQ:PANW be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.