PANW closes higher for the 6th day in a row
Palo Alto Networks Inc. (PANW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, PANW finished Thursday at 168.00 edging higher $1.99 (1.2%), significantly underperforming the S&P 500 (6.24%). Trading $3.70 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 18th, PANW actually gained 4.93% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PANW as at Mar 26, 2020):
Thursday's trading range has been $6.50 (3.86%), that's far below the last trading month's daily average range of $10.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for PANW.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Palo Alto. Out of 167 times, PANW closed higher 58.08% 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 50.30% with an average market move of 0.36%.