Trade Setup: PANW
Palo Alto Networks is moving with strength. The trend is intact, momentum is improving, and the stock is approaching its prior high. We entered before the move accelerated. Now the job is to protect the gain and let the trend work.
Setup
PANW ranked near the top of our Stocks on the Move report. It combined strong momentum, high trend quality, and support near its rising 20-day moving average.
Why It Matters
Strong stocks tend to keep moving when the market supports them. PANW closed 4.61% higher on August 3 and followed through the next morning. That confirms demand, but the stock is now approaching resistance at $368.80.
Current Price
Approximately $358.66 as of August 4, 2026.
Technical Structure
- Entry: $338.66
- Rising 20-day SMA: approximately $334.58 at entry
- August 3 low: $330.00
- Prior high: $368.80
- Trend quality: Exceptional
- Market regime: Bullish
The structure remains healthy. PANW is above its rising 20-day SMA and has reached roughly 2R from our entry.
Entry
We entered PANW at $338.66 on August 3, 2026.
The entry followed a pullback toward the rising 20-day SMA. The stock then closed at $347.13, confirming renewed momentum.
Stop
Initial stop: $328.90
This sits below the August 3 low and limits the original risk to approximately 2.9%.
With PANW reaching 2R, we will raise the stop on the remaining position to $338.50. We do not want a winning trade to become a loss.
Targets
- Target 1: $348.42
- Target 2: $358.18
- Target 3: $368.80
- Stretch target: $378 to $380
The first two targets have been reached. The next test is the prior high at $368.80.
Risk / Reward
- Initial risk per share: $9.76
- Target 1 reward: $9.76
- Target 2 reward: $19.52
- Initial reward-to-risk: 2.0 to 1
Trigger
The trade triggered when PANW held above its rising 20-day SMA and regained momentum through $338.66.
A close above $368.80 on strong volume would trigger the next stage of the move.
Invalidation
The setup weakens if PANW loses $347 and fails to recover.
The original setup is invalid below $328.90. Our adjusted stop is now $338.50 because the trade has already reached 2R.
Status
Active. Profitable. Position management.
PANW has gained approximately 5.9% from our entry and is testing the upper end of its recent range.
Trade Plan
We will trim part of the position near $358 to $360. We will hold the balance for a test of $368.80 and raise the stop to $338.50.
If PANW breaks above $368.80 with strong volume, we will trail the remaining position beneath the rising 20-day SMA. If the stock rejects resistance and closes below $347, we will reduce further.
PANW is scheduled to report earnings on September 1. We will not carry the full position through the report. The company lists the upcoming earnings call on its Investor Relations calendar.
What We're Watching
We want to see PANW hold above $347 and build toward $368.80. A controlled pause would be healthy. A sharp reversal below $347 would show that momentum is fading.
Setup Date
August 3, 2026
Disclosure
We hold a position in PANW.
Disclaimer
This content is for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any security. Trading involves risk, including the possible loss of principal. Always conduct your own research and consider your financial situation before making investment decisions.