PALO ALTO NETWORKS INC is setting up nicely for a breakout.

Our stock screener has spotted PALO ALTO NETWORKS INC (NASDAQ:PANW) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:PANW.

What is the technical picture of NASDAQ:PANW telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, PANW scores 8 out of 10 in our technical rating. Although PANW is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• PANW is one of the better performing stocks in the Software industry, it outperforms 84% of 362 stocks in the same industry.
• PANW is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PANW slightly outperforms the market at the moment.
• In the last month PANW has a been trading in the 181.63 - 196.12 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that PANW is one of the better performing stocks in the market, outperforming 92% of all stocks. However, this relatively good performance is mostly due to a recent big move.

How does the Setup look for NASDAQ:PANW

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:PANW scores a 8 out of 10:

Besides having an excellent technical rating, PANW also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 190.56, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:PANW

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NASDAQ:PANW and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.