Did You Buy Palo Alto Networks? It's Time Now to Sell

Cyber ​​security company Palo Alto Networks (PANW) increased 10% from recommend buying the stock. Stock from a low of about $ 128 on May 27 to a recent high of $ 140.75 on Monday increased.

But now is the time to take profits and move on to the stock with better prospects in the short term.

The recent rebound in Palo Alto, just below the previous $ 147 price target my America, but the chart below, courtesy of TradingView, shows a recent movement to stock more value-oriented growth stocks is underway. On the positive side, Palo Alto made to test your level of short-term support around $ 130 twice and adopted. However, the potential benefits involved from the last time we will look at the table longer than expected.

PANW traded around $ 137, up 22.24% year to date, including a reduction of 10% in the last three months. This compared with an increase of 3.68% year-to-date on the S & P 500 (SPX) index. Despite the poor results, do not hold your breath to think there is value. Stock trading on impulse and momentum is on your side for the moment.

From the table above, PANW the $ 140 resistance is shown (red arrow) is too strong to break. We believe that a line in the sand is, now. This is because every time the action reaches that level, it met with strong selling pressure. This means that shares in a range for the next three months or until they Palo Alto growth can compensate for disappointment.

What's more, the company has suffered a decline in its stock, which was expected, income oriented investors in the third quarter due to the slowdown in growth may be guided. Both Deutsche Bank and Needham cut its rating to hold from buy. With the stock at a price that is five times forward earnings estimates S & P 500 index, the opportunity to take a break would be limited.

The best we can hope for is what is now improved to 10% from $ 128 to $ 140 with PANW show weakness, down to $ 136 is likely to be $ 130 before the Supreme Court that moves leadership, but never expected to break $ 140 this cycle during the next three months.