Palo Alto Networks Inc. (PANW) may be a stock to watch in the coming weeks as shares of PANW are setting up technically; given their sharp gains within the SIA NASDAQ 100 Index and SIA S&P 500 Index Reports. These recent gains are evident both from a relative strength perspective on the attached SIA Matrix Position Chart and on an absolute performance basis on the weekly candlestick chart. PANW shares are now up 16.75% in the past month, compared to the NASDAQ Composite Index and S&P 500 Index, which have risen 3.89% and 2.83% respectively.
After consolidating through 2024 and most of 2025, between the trading ranges of $140 and $200, shares are now pushing the upper boundary of resistance and are within reach of a multi-year breakout. Volume gains are also notable and have been circled to highlight increased investor interest during the latest pullback in late spring 2025. A momentum indicator has also been added, showing the Advance Decline lines spreading in favor of the positive red line, which may provide the technical strength needed to break through resistance.
The next chart presented is the point and figure chart, which is scaled at 5% to illustrate the long-term positive trend line and to establish secondary trend lines. These are shown in black, and trace the upward movement from 2023 to the present, culminating in a hard stop at resistance near the psychological $200 level. This wedge appears to be approaching a potential inflection point where shares could either break out convincingly, forming a bullish quadruple point and figure top pattern, or alternatively fail and break the intermediate trend line. Point and figure support is currently noted at $165.44 and $150.06.
The breakout level to monitor on this 5% scaled point and figure chart is $211.15. If this level is surpassed, the projection could be established using a point and figure vertical count at $311.96, based on the prior consolidation range. Taken together with the current support levels, the risk and reward parameters might favor the bulls on any material breakout, given the new upside reward versus downside risk. PANW is a member of the favored SIA Computer Hardware sector, which may act as a tailwind, though the shares currently carry an SIA SMAX reading of 5 out of 10. This is another metric that may warrant monitoring for any positive shift to a 6 or higher reading.
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