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Fan Yang

Palo Alto Networks Inc. (PAWN) Pulls Back to Key Support

Palo Alto $PANW has been pushing into all-time-highs, and almost tagged $240 a share before retreating back towards $200.

PANW Daily Chart

(click to enlarge)

Support/Resistance Pivot:
- On the daily chart, we can see the the market stalled around $200 in late 2015. Since then, there has been a period of consolidation. 
- However, after price rebounded from $110 in 2017, the bulls extended PANW past the $200 resistance in 2018. 
- As we face a period of general market contraction, PANW has retreated back to the $200 area. 
- Other than being a previous support/resistance pivot, the 200-day simple moving average (SMA) is also right around $200. 
- The RSI has dipped below 30, hanging around the oversold area. In a bullish market, this could be a signal that the the correction is nearing an end. 
- I think there will be a bounce here towards the $217-$220 area, which is a previous resistance area. We should anticipate selling here in case the market is still working out a price top, and resistance here could be part of a head and shoulders pattern.
- Also, if the RSI holds under 60, we should anticipate further bearish correction.
- For now, though we should anticipate buying around $200. Perhaps, we should give it some elbow space to $190 for support because of the general market downturn. 

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