Palo Alto Network Inc. (PANW) stock price slumped nearly 6% in the last week delivering weakness over the charts. The stock price declined below the 50-day EMA on Thursday and maintained the same intraday session on Friday indicating weakness in the price trend.
However, the daily chart illustrates that the PANW stock persisted in a strong trend for the last 2 quarters. The stock yielded a return of 61.70% on a year-to-date basis; outperforming the index returns. The PANW share price maintained above the 50-day EMA for most of the time. Moreover, the stock price showed short-term drawdowns which were later soaked up by the aggressive presence of bulls at the lower levels.
Analysts offering a 1-year price forecast for Palo Alto Network Inc. have a maximum estimate of $340 with an upside potential of more than 48% and a minimum estimate of $225. Moreover, Citigroup has raised PANW share Price yearly targets to $285 which was previously at $260, and maintains a buy rating.
PANW stock option-chain analysis states that the current implied volatility in the market is 29.72% with a decrement of 0.41% in the last trading session. The at-the-money strike has an OI of 1439 on the PUT side and 433 on the CALL side indicating the buyers dominating at the CMP.
PANW Stock Price Forms Bullish Flag Near All-Time High
The PANW stock price currently trades at $228.51 and witnesses the formation of a bullish flag pattern near the all-time high. The recent week saw some drawdowns which took the piece to the lower boundary of the flag pattern by the end of Friday’s closing.
The stock has shown some weakness over the charts in the short term and forms a bullish flag near the swing high. However, the stock shows a positive outlook and potential rise in the long term. Currently, the price seems to have entered a short-term correction phase after a big rally.
Moreover, the PANW share price might show gains in Monday’s session as the price trades at the lower boundary of the bullish flag. The bulls may try to maintain the price in the flag pattern to keep dominating in the price trend.
Technical Indicators Show That Price Slides Below 50-Day EMA
The daily PANW stock price chart shows that the price slid below the 50-day EMA indicating some short-term weakness in the stock. However, the long-term indicators are bullish over the price trend.
The overall technical opinion rating including RSI and MACD signals a 64% “buy” with a weakening short-term outlook on maintaining the current direction.
Conclusion
Palo Alto Network Inc. (PANW) stock price dropped nearly 6% in the last week and fell below the 50-day EMA, showing some weakness on the charts. The stock price has been in a strong uptrend for the last 2 quarters, delivering a return of 61.70% on a year-to-date basis. Analysts have a maximum estimate of $340 for PANW in a year, which is 48% higher than the current price of $228.51. The stock has formed a bullish flag pattern near the all-time high and might bounce back on Monday.
Technical Levels
- Support levels: $225.78 and $209.16
- Resistance levels: $235.16 and $249.56
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/23/citigroup-raises-panw-stock-price-target-to-285-hold-or-exit/