According to Schaeffer's Senior Quantitative Analyst Rocky White, PANW stock is now within striking distance of its 260-day moving average, a move that has typically resulted in positive returns. This follows a prolonged period above this trendline (defined by White as 80% of the time in the past two months and eight of the last 10 trading days). A similar move occurred five times in the last three years, after which the security was higher one month later each time, averaging a 10.7% gain.

 

 

PANW was last seen up 3.9% to trade at $180.57, so a move of similar magnitude would set it just shy of the $200 level, nearly closing the pullback from its Feb. 19, all-time high of $208.19. Longer term, Palo Alto Networks stock still sports a 27.1% year-over-year lead.

 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio ratio of 2.28 ranks higher than 93% of annuals readings. This indicates options traders have been much more bullish than usual in the last 10 weeks.