Palo Alto Networks (PANW) shares tumbled on Wednesday as the cybersecurity giant’s mostly in-line guidance overshadowed quarterly results that surpa𓆏ssed W⛎all Street estimates, indicating investors may have been looking for more.

The stock fell nearly 7% to close at around $181, pushing it slightly into negative territory year-to-date. Shares are still up about 25% from last month's low, as investors continue to assess the company’s platformization strategy, which involves transitioning customers to a cloud-based 澳洲幸运5官方开奖结果体彩网:cybersecurity platform.

 Below, we take a closer look at Palo Alto’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify pric🍌e levels worth watching out for.

Recent Breakout in Focus

Palo Alto shares had trended modestly higher after breaking out above the upper trendline of a descending 澳洲幸运5官方开奖结果体彩网:broadening formation in late April.

More recently, the 澳洲幸运5官方开奖结果体彩网:relative strength index tracked toward 澳洲幸运5官方开奖结果体彩网:overbought levels, indicating building price momentum ahead of the cy🦹bersecurity giant’s quarterly results. That bullish sentiment ended abruptly on Wednesday.

Let’s identify several 澳洲幸运5官方开奖结果体彩网:support and resistance levels on Palo Alto’s chart th🎉at investors will likely be watching.

Key Support Levels to Watch

The first lower level to watch sits around $180. This area, currently located roughly midway between the 50- and澳洲幸运5官方开奖结果体彩网: 200-day moving averages, may provide support near a trendline that connects a range of corresponding 澳洲幸运5官方开奖结果体彩网:price action on the chart stretching back to last September.

Selling below this level raises the possibility for a steeper drop to the $165 level. Investors could seek longer-term 澳洲幸运5官方开奖结果体彩网:buy-and-hold opportunities in this region near January’s 澳洲幸运5官方开奖结果体彩网:retracement to the 200-day MA, which ♋also closely aligns with troughs that formed on the chart during September and October last year.

Key Resistance Levels to Monitor

Upon a resumption of the stock’s recent move higher, it’s worth monitoring the $205 area. This area may provide overhead selling pressure near a series of peaks that developed on th𝔉e chart between November and February.

Finally, investors can forecast a potential price target above the stock’s 澳洲幸运5官方开奖结果体彩网:record high by using the 澳洲幸运5官方开奖结果体彩网:measuring principle, a technique that analyzes 澳洲幸运5官方开奖结果体彩网:chart patterns to project future price moves.

When applying the analysis to Palo Alto’s chart, we calculate the distance of the descending broadening formation from its low to high and add that amount to the pattern’s breakout point. For instance, we add $64 to $176🐷, which projects a target of $240.

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