Palo Alto Networks (PANW) has been climbing nicely off a huge gap down on earnings in late February 2017. Unfortunately for the investor it has been a round trip back to the beginning. On Tuesday's weak overall tape where the Dow was down 250, PANW pushed up to close at a new high. That's bullish.
This year, PANW will be reporting earnings on Monday, February 26th, 2018 which is only a few days away.
While the earnings a year ago were a bomb, the price action here looks strong. To keep the risk out of the trade, it might be better to wait for Monday's earnings. While that might miss a gap up, it might also miss a gap down. I plan to keep it on the radar for next week. It looks timely.
Greg Schnell, CMT, MFTA.