Shares of PANW continue to consolidate following a very solid earnings report back on May 21st: https://www.zacks.com/stock/news/938599/palo-alto-panw-q3-earnings-and-revenues-beat-estimates?cid=CS-MKTWTCH-HL-analyst_blog|earnings_article-938599. The stock reached a new rally high the next day but has since been moving sideways. After gaining over 115% off the March lows PANW was due a rest.
During the current consolidation, which appears to be a very well structured bull flag, PANW has held above solid support. Last week the 50D moving average crossed above the stock’s 200D. This pattern is setting PANW up for a fresh rally leg. A key hurdle in the near term is the $234.50 area. This level marks last week’s high. Once past PANW will have a clear path to new all time highs. On the downside a close below $217.00 would violate the June lows sending a clear warning sign that a more drawn out consolidation is ahead.
At time of publication we do not have a position in PANW.