3/2/2017 – Palo Alto Networks (PANW) Post-Earnings Analysis
Palo Alto Networks (PANW) Post-Earnings Analysis
Here is a Palo Alto Networks (PANW) Post-Earnings Analysis. This update includes a couple of charts to analyze and think about after Palo Alto Networks (PANW) reported their earnings and their sliced through the $140 support area that I mentioned to watch for.
Palo Alto Networks (PANW)
After noticing PANW's huge gap-down yesterday morning, I posted an updated chart on the 2 lower support areas to watch as potential bottoming and rebound areas. Here is another copy of the chart.
At first glance, those are the 2 support areas I see. Let's see if either of those support areas can be confirmed using some Fibonacci charting tools.
This is a 3 year daily candlestick chart. I've placed a Fibonacci Retracement Tool on the entire uptrend. The 61.8% Target Line seems to have provided support twice before. The question is though, will it support it this time.
The Fibonacci Extension Tool seems to confirm the 61.8% Target Line as initial support. However, if the support around $115 is broken, the $90 price target comes into play. The $90 price target is calculated by the 161.8% Target Line from the Fibonacci Extension Tool. The 161.8% Target Line also seems to confirm the support area I identified above with the green trendline.
Palo Alto Networks (PANW) - Summary
When a stock's share price does not move as anticipated, it is important to re-analyze the chart set-up before proceeding. For PANW, dropping through the $140 support area and below the beginning of its uptrend in January means it is correcting something larger still.
The first indication for a possible reversal is to monitor the MACD Histogram on its daily chart. When it starts to show a slow-down in selling momentum, calculate which support area it is closer to at that time. If it is near one of the support areas when this happens, a scale-in purchase could be made for trading purposes.
After PANW's share price does finally stat to rebound, a Fibonacci Retracement Tool can be placed on its recent drop and a 38.2% Retracement can be calculated. This would be the minimum amount of the bounce I would anticipate before a possible re-test of the bottom area it sets, whenever that may be.