Palo Alto Networks, Inc. (PANW Palo Alto Networks Inc PANW 146.62 +10.49%) shares traded sharply higher ahead of Friday’s opening bell after the company beat fiscal fourth quarter profit and revenue estimates while guiding 2018 earnings per share in line. The bullish earnings report marked the company’s second quarter of better-than-expected results after the stock slumped to a two-year low in April 2017, and this could signal the end of the broad correction that started after the July 2015 top.
The initial rally burst has mounted the trendline of lower highs in place for the past 25 months, setting off a powerful buying signal as long as the stock holds this lofty ground into the holiday weekend. In turn, that could set the stage for a recovery wave into the mid-$160s, where a line of horizontal swing highs could stall or end the uptick. That shines a bright spotlight on Friday’s price action. (See also: Palo Alto Underpins Cybersecurity Rally.)
Shares broke out above a two-year trendline on strong quarterly results and could enter a momentum-fueled advance. …read more
Read more here: Palo Alto Networks Stock Could Rally Above $160