PANW benefits from expanding AI security demand; recent price action shows relentless buying and a bullish technical setup.

Your last name though is a big beneficiary of uh the announcement uh from Dario Amade. Palo Alto Networks and the cyber names really outperforming today. Palo Alto Network's one of the top performers were up about almost 13% right now for PNW.

Yeah, they're on my radar. uh company we've owned for a long time. And yeah, I mean, it's surprising that it would take this type of news for it to to get this reaction. I'm surprised it was as low as it was.

Uh that said, yeah, you're looking at the price action today. Each time I look at it, it's a little bit higher than it was than I last look. Uh and it's just relentless buying. I think that's makes a lot of sense.

Uh there is going to be uh new layers and layers to this security. Every new data center is another buyer of security. every every new model is a new uh entry point for security.

So it just it just is critical and uh the need for it is expanding. So this has to be a part of the uh AI AI plays owning this uh cyber security companies and uh every company has to be thinking about this very critically.

Uh I I don't think it should have taken this weekend's news for people to uh catch up to that. But uh maybe the market is catching up to it right now uh as they're thinking about it a little little more critically about what uh what this all means this recursive learning models that the AI companies are working through.

All right, Rick. So as we look at the market potentially catching up here, I mean as I'm looking year to date, we're up 100% for PaloAlto Networks. But interestingly, if you look at the last month, we're actually down 3%.

Yes, earnings didn't really do them any favors this time around despite what seemed like it was a pretty strong environment. We did have a a notable drop off that mostly in terms of our closing prices stayed around 328, our green line here.

Another low point here near 308. Did not get tested yet, but that stands out as another extreme low uh for traders to watch out for.

We can see as well that we had our earnings gap here near 356 that has been resoundingly broken at this point here. We also had an old gap in a series of highs near 342 that marked the low of today's trading so far.

So, uh, now we can also see that we had a downward sloping trend line off the highs, an upward sloping trend line across the lows, giving us this triangular shape. Price seems to be pushing above that that triangle right now here.

So, the next potential stop if that does take hold would be this set of highs around 387.

So now uh our volume um our moving averages here show 21day and 5day uh were on top of each other. We have broken above them now. So look for the faster 5-day EMA to be closer to our price activity as a possible supportive level if the move does start to uh uh drift downward once more.

RSI we have broken above our red downward sloping trend line here and above the 50 midline again. So, a similar read to what we said earlier here about it being more of a bullish type of setup when these two things happen, especially when they're happening concurrently.

One other thing to point out, too, is our 63-day EMA was fairly uh supportive here. It seemed like often times price was able to recover above that level here. So, just to kind of illustrate how these moving averages can be support during uptrends and resistance during downtrends here.

So here our volume profile shows that we had a node between about 325 to 363. Not really uh one very consistent large node kind of two smaller spikes around 330 and 350 or so. But now we're pushing above that anyway into the the thinly traded area at the highs.

So beware of fastmoving prices in situations like these.

Yeah. And Palo Alter Networks is now the top performer on the session in the S&P 500 with its almost 13% gain today.