This is a Palo Alto Networks (PANW) stock chart review. After slicing through its initial support area around the $140 price level, I wrote an article to review lower support areas. That article can be quickly accessed here "3/2/2017 – Palo Alto Networks (PANW) Post-Earnings Analysis".
In that article, I identified 2 main support areas to watch during PANW's earnings drop. Those 2 main support areas were located around the $112 and $89 price levels. Let's see how PANW's share price reacted around those support levels. Also, let's see if we can confirm its current trend.
Palo Alto Networks (PANW) Stock Chart Review
Let's start out the Palo Alto Networks (PANW) stock chart review with a 3 year weekly candlestick chart. PANW had a nasty earnings drop back in February 2017. Its share price did find support right around the secondary support area from the Doji candlestick pattern.
If you purchased any shares when PANW's share price was around the $112 support level, congratulations on the buy!
PANW's share price has now seen resistance at the $140 level during its attempted rebound. A break above the $140 price level on heavier than normal buying volume is needed to continue the uptrend towards its overhead resistance area. The overhead resistance area currently resides around the $160 price level.
The MACD Histogram for PANW on the above chart reflects an increase in buying momentum as compared to its previous rebound. That increase in buying momentum typically indicates…...
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I review support areas to consider scale-in purchases. Overhead price targets are also calculated. And most importantly, I discuss the downside risk for PANW's share price.
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