Palo Alto Networks , Inc. (PANW) has turned lower this month, and the decline does not appear to be over.
Let's check on the latest charts and indicators.
In the daily bar chart of PANW, below, we can see a rally from the low in November to a high in the end of February. Notice that trading volume was light on the rally, but then exploded on the gap up to the new high around $260.
After this upside surge, the price action become stalled, with the $250 level marking the highs. This month prices have closed below the declining 50-day moving average line, and now PANW is close to a test and maybe a break of the rising 200-day moving average line.
The daily On-Balance-Volume (OBV) line shows a rise from early December, but it has stalled in recent weeks. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to a take profits sell in early March and moved below the zero line this month for an outright sell signal.
In this weekly bar chart of Action Alerts PLUS holding PANW, below, we can see how the indicators have weakened. Prices have turned lower and are close to a test of the rising 40-week moving average line.
The weekly OBV line has rolled over the past two months and the MACD oscillator has crossed to a longer-term take profits sell signal.
In this point and figure chart of PANW, below, we can see that prices have made a new low for the move down, and that a $205 downside price target has been projected. The decline may not end at $205, as there does not appear to be any chart support there.
Bottom-line strategy: Our point and figure target for now is $205, but there is no chart support until the $190-$180 area. Get defensive.