Earnings Play: Palo Alto Networks

Palo Alto Networks appears to be headed for 300.

New Highs 2

On Monday, after market, Palo Alto Networks (PANW) is expected to release fourth quarter EPS of $1.39 compared to $1.47 the prior year on revenue of approximately $923.8 million vs. $805.8 million last year. The company operates as a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support, and its expected move based on front-month options is 7.4%. The last time the company reported earnings the stock rose 3.7%.

Looking at a daily chart, Palo Alto's stock price is holding above a bullish trendline that began to form in late-June. Price has been steadily making new highs since August 5th. The RSI is bullish and advocates for further advance. Price will likely head for the 300.00 level as it is a significant round number. If price can break above 300.00 it may reach for 316.00, the first Fibonacci extension target. If price falls below the rising trendline traders can look to 253.00 for a possible bounce. If price cannot hold above 253.00, it could fall further to 234.00. However, given that we are still in a bull market sentiment favors a continuation of the trend. 

Source: GAIN Capital, TradingView

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