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Shares of PANW continue to consolidate following a very solid earnings report back on May 21st:|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.