🔍 Weekly Trade: PANW Strong After Earnings

Market Outlook: Extremely Bullish

Sector: Technology Services

Risk Level: Moderate

🔍 Breakdown of Entry- Long Breakout

• Palo Alto Networks recently reported strong earnings, with notable growth in its cloud and subscription segments. The market reacted favorably, sending the stock higher and reclaiming the 50-day EMA, which is now acting as support.

Key Technical Drivers:

• ✅ Price action is holding above the 50 EMA, signaling buyer control
• ✅ The 50 EMA is being retested as support — a healthy trend signal
• ✅ Volume has remained elevated following the earnings breakout
• ✅ PANW has outperformed many tech peers this month

Price Targets:

• First Target: $208
• Secondary Target: $247 (medium-term)

As long as price remains above the key support level at the 50 EMA, this setup remains intact.

🚨 Risk Management

• Invalidation Level (Stop Loss): Below $175(This level breaks the 50 EMA and would negate the current structure.)
• Position size should reflect standard risk parameters: ≤2% of account equity
• Be prepared to wait for confirmation if the stock wicks lower intraday. Reclaiming strength after a dip may offer better entries.

📝 Final Thoughts

We’re bullish on PANW heading into the new week.

The company delivered strong fundamentals in its latest earnings, especially in cloud security growth — a key sector in today’s digital arms race. Technically, PANW is now riding a breakout structure, with buyers supporting higher lows and trend-followers stepping back in.

With the stock above both the 50 EMA and key volume zones, and sellers from recent highs now underwater, we may see short covering fuel further upside.

This setup offers a clean, high-probability opportunity for both swing traders and trend continuation strategies, with clear targets at $208 and $247.

As long as price remains above the support level and buying volume stays consistent, PANW is one of our top trades to watch this week.