Don't Ignore This Chart!

Palo Alto Holds above Breakout Zone


The stock market was hit with hard selling pressure last week, but Palo Alto Networks (PANW) held up rather well and move below its breakout zone. Stocks that hold up best during a broad market correction are often the ones that lead on the rebound. 

The chart shows PANW in a clear uptrend with the 50-day EMA above the 200-day EMA. Both EMAs are also rising. PANW also recorded a 52-week high in late January and remains just a few percent below this high. 

The broken resistance zone in the 151-153 area turns first support and this is the first area to watch for a bounce. It is possible that a small bull flag is forming over the last two weeks (blue lines). Watch for a breakout at 160 to signal a continuation higher. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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