Palo Alto (PANW): A Golden Pocket Opportunity

16 Agu

Palo Alto's chart is looking particularly promising in a market where many stocks seem to be constantly soaring. These defined ranges present a strong trading opportunity, which we're closely monitoring. It appears that Palo Alto has completed its Wave (3) and is now in the midst of Wave (4). We anticipate that Wave (4) will conclude within the 38.2% to 61.8% Fibonacci retracement levels, providing a potential entry point.

The golden pocket around the 61.8% level is particularly intriguing, though we haven't highlighted the 50% retracement as it doesn’t align with key support levels. We see two potential scenarios for Palo Alto: a correction to the 38.2% level, meeting the support zone around $249, or a deeper retracement into the broader support area and golden pocket between $191 and $160.

If we take a long position at the first support zone, we would likely move the stop loss quickly to secure the position, with plans to add to our position if the price drops further into the lower support range. For now, we're waiting on the sidelines, keeping a close watch on the upcoming earnings call. If it brings any significant news, we’ll outline our strategy for PANW.