It's Time to Raise Palo Alto Networks Sell Stops
With the stock price rising sharply after earnings, we have a new sell stop price for PANW investors to consider.
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I looked at the charts and indicators of Palo Alto Networks PANW on August 12, 2024 ahead of their earnings. Their quarterly numbers were released Monday evening and the stock price is up sharply in the pre-market on Tuesday. I recommended holding longs in PANW and raising your sell stop to $280.
PANW reported a Non-GAAP EPS of $1.51 which beat by $0.10 and revenue of $2.2 billion, which beat by $40 million. The company saw upbeat momentum for FY25.
Let's check and see what we can do today.
In this daily bar chart of PANW below, I can imagine prices opening with a gap higher Tuesday. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line. The On-Balance-Volume (OBV) line shows me a rising trend the past 12 months, which tells me that buyers of PANW have been more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has recently crossed back above the zero line for a fresh outright buy signal.
In this weekly Japanese candlestick chart of PANW below, I can see a rising pattern the past two years. Prices trade above the rising 40-week moving average line. The weekly OBV line has been constructive the past three years. The MACD oscillator is above the zero line and moving in the right direction.
In this daily Point and Figure chart of PANW below, I can see an upside price target in the $459 area.
In this weekly Point and Figure chart of PANW below, I can see an upside price target in the $465 area.
Bottom line strategy: Traders who are long PANW should continue to hold those positions. Raise sells stops to $301 from $280. The $384 to $400 area is the nearest price target.
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