PANW - Trend Analysis

31 авг. 2020 г.

PANW is downtrending since last Earnings. The ER results and the guidance were good but still the stock was beaten down most probably due to Profit taking.
In an attempt to predict the bottom in this downtrend, i have drawn here 2 Fibonacci Levels.

1. Major Trend -- Fibonacci Retracement from March Lows upto August High, This shows 0.236 level at 239s and 0.382 level at 217s.
2. Minor Trend - Fibonacci Extension from July consolidation low at 221 upto August High at 275. This shows 0.618 level at 254 where the current price is sitting now.

We need to wait and see if the drop is going to follow this Minor trend or the Major trend.

-- Assuming it is going to follow the Major Trend, it can fall all the way to 239s which will confirm it follows the Major trend. It can bounce back from that level mostly. A drop further will put that into 217s (which is 0.382 level).
-- If it appears to follow the Minor trend, then the drop levels are 254 / 247 / 241 / 233 / 220

Potential Support levels:
Major Trend Drop Levels -- 239 / 217 / 200
Minor Trend Drop Levels -- 254 / 247 / 241 / 233 / 220

The support can be established at any of the above levels. And a bounce back of 20% above that level will provide a confirmation of Trend Reversal.
So far, it looks like 240 may be the Support where it can potentially bounce back.

Nevertheless, once the bottom is established, PANW is guaranteed to go back to 300+ especially considering a string of PT raises recently.
So this looks like a good buying opportunity for both long term buy-and-hold and short term Swing Trading.