Palo Alto Networks continues to reward investors – here’s where it could go next

In his first “Executive Decision” segment of his bad money On Thursday night, Jim Cramer spoke with Nikesh Arora, president and CEO of Palo Alto Networks (PANW), the cybersecurity company.

Arora said that in today’s world, everyone is vulnerable, which is why it is so important to be alert and prepared for attacks. Many hackers have gone from hobbyists to professionals, she said, targeting digital infrastructure, including services, software and frameworks.

There are also cyber threats from Russia that everyone needs to take seriously. If Russia attacks, they will not seek rescue, they will seek chaos and destruction.

Palo Alto Networks constantly scans its customers for anomalies and uses artificial intelligence to stop attacks as they happen, before damage is done.

We looked at PANW the other day on March 25 and wrote that “You have to be impressed when a stock shows independent strength. Traders should wait for a pullback closer to $575 before buying. Risk at $540.”

Let’s review the charts again.

On the updated PANW daily bar chart below, we can see that the stock has held strong with a new high for the move up on Thursday. PANW is holding above the 50-day ascending moving average line and above but not extending above the 200-day ascending line.

The On-Balance-Volume (OBV) line has been positive for the last 12 months and confirms price gains with aggressive buying. The moving average convergence divergence oscillator (MACD) is bullish.

On the PANW weekly candlestick chart below, we can see that stocks have been holding strong with white (bullish) real bodies. A high wave candlestick pattern is shown for last week, but this week’s candlestick (not charted) should update the uptrend.

The weekly OBV line is close to making a new high for the move up and that will be positive for the chart. The MACD oscillator crossed higher earlier this month for a direct buy signal.

On this daily PANW Points and Figures chart below, we can see a new high for the move up and a price target of $709.

On this weekly PANW Points and Figures chart below, we can see a potential longer-term target in the $852 area.

Fund strategy: Traders should continue to hold long PANW but add stops to $574 from $540. The $700-$709 area is our closest price target.

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