PANW exhibits a bearish head and shoulders pattern; a break of the 333-335 neckline signals further downside.

PaloAlto Networks down a little bit on earnings. Not much though folks. So not really anything that I'm getting my attention on here again if it were to flush and there might be a little bit of an opportunity down here around 333.

Still $22 lower than current levels but nothing that I'm really focusing on.

The bigger issue here with Palo Alto, folks, is that it has a head and shoulders pattern. Now, if that triggers, that's problematic. Head and shoulders are very, very bearish pattern formations.

And this is what I would be looking at. So, shoulder, head, and then with the gap down today, are we completing the right shoulder? And if that's the case, then I do want to make sure I monitor this neckline to see if it breaks around 333 to 335.

A daily close below that could signal further selling in the stock.