Palo Alto Networks (PANW) shares tumbled on Wednesday because the cybersecurity large’s largely in-line steering overshadowed quarterly results that surpassed Wall Street estimates, indicating traders could have been on the lookout for extra.

The inventory fell practically 7% to shut at round $181, pushing it barely into detrimental territory year-to-date. Shares are nonetheless up about 25% from final month’s low, as traders proceed to evaluate the corporate’s platformization technique, which includes transitioning prospects to a cloud-based cybersecurity platform.

 Under, we take a more in-depth have a look at Palo Alto’s chart and use technical analysis to establish value ranges price watching out for.

Current Breakout in Focus

Palo Alto shares had trended modestly larger after breaking out above the higher trendline of a descending broadening formation in late April.

Extra lately, the relative strength index tracked towards overbought ranges, indicating constructing value momentum forward of the cybersecurity large’s quarterly outcomes. That bullish sentiment ended abruptly on Wednesday.

Let’s establish a number of support and resistance ranges on Palo Alto’s chart that traders will seemingly be watching.

Key Help Ranges to Watch

The primary decrease stage to observe sits round $180. This space, at present situated roughly halfway between the 50- and 200-day moving averages, could present help close to a trendline that connects a spread of corresponding price action on the chart stretching again to final September.

Promoting under this stage raises the chance for a steeper drop to the $165 stage. Buyers may search longer-term buy-and-hold alternatives on this area close to January’s retracement to the 200-day MA, which additionally intently aligns with troughs that shaped on the chart throughout September and October final 12 months.

Key Resistance Ranges to Monitor

Upon a resumption of the inventory’s latest transfer larger, it’s price monitoring the $205 space. This space could present overhead promoting stress close to a collection of peaks that developed on the chart between November and February.

Lastly, traders can forecast a possible value goal above the inventory’s record high through the use of the measuring principle, a method that analyzes chart patterns to mission future value strikes.

When making use of the evaluation to Palo Alto’s chart, we calculate the space of the descending broadening formation from its low to excessive and add that quantity to the sample’s breakout level. As an illustration, we add $64 to $176, which tasks a goal of $240.

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As of the date this text was written, the creator doesn’t personal any of the above securities.