Palo Alto Networks, Inc. (NASDAQ: PANW) price surged nearly 5.28% in the last week and added 0.97% on Tuesday to close at $245.07. The price action analysis shows that the price has been forming a bullish flag pattern after hitting an all-time high of $258.88.
The company reported its quarterly results on Friday, 18 August, with the results reflecting a positive quarter. The pre-earning sentiments triggered a gap-down opening followed by some profit booking. However, after the release of the report, the stock surged again and entered the channel.
The stock price might be volatile on Wednesday due to the news that Palo Alto Networks, Inc.’s Chief Product Officer, Lee Klarich sold 45,000 shares worth $10.9 Million. Consequently, Klarich now has control over a total of 597,213 shares of the company, with 420,000 shares controlled indirectly and with direct control of a total of 177,213 shares.
The company reported a good quarter where revenue stood at $1.953 Billion, thereby almost matching the analysts’ expectations. Additionally, the company raised its revenue outlook to $1.44 Billion, beating analysts’ estimates of $1.286 Billion.
The analysts offering 1-year price forecasts for Palo Alto Networks, Inc. have given a maximum estimate of $340 and a minimum estimate of $225. Digital World Acquisition Crop. engages in providing network security solutions to enterprises, service providers, and government entities.
PANW stock option-chain analysis shows that the current implied volatility in the market is 27.16% with an increment of 0.90% in the last trading session. The nearest support of $225 has an OI of 131 open contracts on the CALL side and 546 open contracts on the PUT side, indicating that the buyers are dominating at the support level, which indicates that the price may bounce back if it declines to the lower levels.
PANW Stock Price Formed A Channel Pattern Over The Daily Timeframe
PANW stock price currently trades at $245.07 with an intraday gain of 0.97% on Tuesday. The price is steadily reaching a resistance level of $250. The price might have to struggle to break above this level. However, this requires more aggressive buyers to accumulate at the lower levels.
The breakout of the channel and the $250 level may cause the price to surge and hit an all-time high again. The price seems to be in a strong uptrend which might invite buyers at the dips and cause the price to surge higher.
However, buyers might struggle to take control as long as the price is maintained in the channel.
PANW Stock Price Surged To Break Above the 50-EMA
The daily PANW stock price chart shows that the price made a breakout of the key moving averages and recently, the price took support from the 50 EMA, indicating bullishness in the stock price.
Currently, the overall Technical Opinion rating, including the RSI and MACD indicators, is signaling an 88% buy with the strongest short-term outlook on maintaining the current direction.
Conclusion
Palo Alto Networks, Inc. is a network security company that reported strong quarterly results and raised its revenue outlook. The stock price surged to an all-time high of $258.88 and formed a bullish flag pattern. The price might face resistance at $250 and requires more buyers to break out of the channel. The stock price might also be affected by the news that the Chief Product Officer sold 45,000 shares worth $10.9 Million. The analysts have a positive forecast for the stock price, with a maximum estimate of $340.
Technical Levels
- Support levels: $225.78 and $209.16.
- Resistance levels: $250.18 and $260.24.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/06/panw-stock-price-prediction-can-panw-touch-new-highs/