Chart of the day

Where do we stand fundamentally?

Upcoming Earnings: PANW is set to announce its Q1 FY2025 financial results on November 20, 2024. Expectations are high given the ongoing demand for advanced cybersecurity solutions amidst increasing cyber threats​.

Analysts continue to show strong confidence in PANW. RBC Capital and Jefferies recently reiterated their "Buy" ratings, both setting a price target of $450, reflecting optimism about the company's growth trajectory. The consensus target across analysts suggests potential upside for investors.

PANW is testing a possible short-term peak of 408 in the third long-term upside wave as it is reaching the fifth wave of the third wave and a 161.8% extension. We need to see a breakout above this level for an extended third wave. I expect a deeper pullback here in the fourth wave of the five long-term waves for a retest of the 408 again and a possible extension higher.

We are in the development of the fourth wave short-term before a rally higher in the fifth long-term wave. Before an extension higher we could see a pullback from here in the short term if we get a break below 384. Invalidation of a swing lower will happen upon a bounce and a confirmed break above 408.

_{Try a short trade entry with a stop loss above 410 to target 315 or trade it with options like in the example below.}