PAWN SHOPPE?

Gator's Chart of the Day: PANW

Palo Alto Networks has finally been trading long enough that it has a 20 day average.  It looks healthy enough that it should make it to a 50 day average later this month.

This one qualifies for the Fitz IPO trade.  That's the technique he uses that trades blue sky.  The only losers in the stock so far are those who bought Wednesday.  So here's how I would look to trade it.

The Trade
If you want to be aggressive then take some right here at 70.  The stop should go under the 20 day sma and that's 64.25 so that implies more than 8% downside so you may want to start small.  The safer trade would be to wait for the stock to clear 72.61 and then everyone is a winner. A stop just below 68.50 would be a little over 5% risk and the sky is the limit to the upside.