Palo Alto Networks Inc: This is Why the PANW Stock Run has Only Begun
- Buz Investors PANW Stock Run I am bullish on Palo Alto Networks Inc (NYSE:PANW) stock, and the reason for my bullish outlook is actually quite simple. It is based on the same method I use to analyse every investment that I have the pleasure of covering
- The price chart of PANW stock is constructive, and I can strategically and systematically apply a trading strategy to this position.
- My method is not rocket science; the only factors that are needed are that I obey the rules that I set out prior to establishing a position. This is effective in managing my risk, which is the most important aspect to any trading strategy.
PANW Stock Run Bull Run
PANW Stock Run The Palo Alto stock chart above is simple and shows the effectiveness of the 200-day moving average. The 200-day moving average is the dividing line between stocks trading in a bull market versus stocks trading in a bear market. When the share price is above the moving average, it is bullish; when the share price is below the moving average, it is bearish.
This indicator serves to smooth out the long-term trend in PANW stock. In December 2013, Palo Alto stock crossed above the 200-day moving average and the share price proceeded to climb 300% before peaking at $200.55. This marked the bull phase.
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PANW Stock Run
The run higher of the lows in June have been very uniform. PANW stock has been confined by two trend lines that represent support (highlighted in baby blue) and resistance (highlighted in black). Swing traders can use these trend lines to effectively trade the range. The price has tested support and resistance on numerous occasions, but the price tends to hug the resistance line as the buying pressure is high.
In October 2016, Palo Alto stock generated a golden cross. A golden cross is a bullish signal that is produced when a 50-day moving average, highlighted in blue, crosses above a 200-day moving average, highlighted in red. This signal serves to confirm that a bull market is on the horizon and reaffirms the price increase. It it not uncommon for a trend to accelerate after such a signal, as traders use this a prevailing tailwind that will further drive share prices.Click here for reuse options!
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