PANW pushes through Thursday's high
Palo Alto Networks Inc. (PANW) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PANW ended the week -3.97% lower at 225.62 after gaining $0.79 (0.35%) today, outperforming the S&P 500 (-0.58%). Closing above Thursday's high at 225.31, Palo Alto confirmed its breakout through the previous session high after trading up to $2.15 above it intraday.
Daily Candlestick Chart (PANW as at May 17, 2019):
Friday's trading range has been $5.84 (2.63%), that's slightly above the last trading month's daily average range of $5.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PANW. Prices continued to consolidate within a tight trading range between 219.43 and 230.60 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 222.22 (S1). After spiking up to 227.46 during the day, the share found resistance at the 100-day moving average at 226.36. The last time this happened on November 16, 2017, PANW actually gained 2.90% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 219.43 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Palo Alto. Out of 390 times, PANW closed higher 52.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.92% with an average market move of 1.26%.