Palo Alto Networks

Palo Alto Networks (PANW) has been a beast of a stock, doubling in less than a year. It's one of those stocks you wished you owned at the start of its run. As you can see in the chart below, the (red) 50 day moving average has acted as support as each time price fell (albeit briefly) below, it rallied back above it immediately. In the most recent consolidation zone (marked by my two horizontal black lines) price moved sideways for 6 weeks which allowed an unwinding of the overbought conditions and the bulls a rest, touching the 50dma once.

What is compelling about this is today price broke above the upper black horizontal resistance line which it tried but failed to break through 3x prior.  In addition, it did it on higher than average volume. This is extremely bullish activity and something a new investor into the stock would look for on an entry point.

As long as the overall market continues to push higher, this stock will likely be a strong beneficiary as all the moving averages are bullishly aligned and momentum is strongly within the bullish range. The upside target for today’s breakout is ~$165. This is a volatile stock and not appropriate for everybody, especially those who don’t have an exit strategy in case the bullish thesis is wrong. Invest safe.