Palo Alto Networks: Top Established!

PANW reached a new peak at $207.24 on December 16. Although the price briefly moved above the significant $200 threshold, it failed to gain traction at higher levels. Thus, we now consider the top of the beige wave B as established and position the stock in the third and final stage of the larger wave (II) correction. From the wave B peak, the stock has already seen a pullback of approximately 20%. We anticipate that this downward movement will continue and ultimately reach our blue Target Zone between $104.74 and $55.73, where the ongoing downtrend should find its bottom. In our alternative scenario, we assign a 30% probability to an immediate breach of the resistance at $207.24. In this case, we would have to reckon with a new high of the blue wave alt.(I).