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All right, gang, let’s talk about Palo Alto Networks (PANW).

This one’s been on my radar, and for good reason.

It’s trading about 10% below its 52-week high of $208.39, and while it’s been outperforming the broader market this year, it’s lagging behind some of the big dogs in the cybersecurity space like Zscaler (ZS), Okta (OKTA), and CrowdStrike (CRWD).

The cybersecurity sector is on fire right now, and the technical setup on PANW is looking really solid.

We’ve got a weekly squeeze, stacked EMAs on the weekly chart, and some nice relative strength.

This one’s shaping up to be a catch-up play, and I’m definitely keeping it on my watchlist.

Let’s break down why this setup has me interested.

Weekly Squeeze: Coiled and Ready for a Move

Let’s start with the weekly squeeze. If you’re not familiar, a squeeze happens when Bollinger Bands contract inside Keltner Channels.

What does that mean?

Volatility is compressing—think of it like a spring winding tighter and tighter. The longer it builds up, the bigger the move when it finally fires.

Now, PANW has a textbook squeeze on the weekly chart. This tells me the stock is building energy for a potential breakout. We don’t know exactly when it’ll fire, but squeezes tend to align with the prevailing trend—and in this case, that trend is up.

A squeeze on a higher timeframe like the weekly chart is no joke. It’s one of the cleanest signals we can get for a big move. Combine that with the strength in the cybersecurity sector, and PANW could be gearing up for something impressive.

Stacked EMAs: A Bullish Structure You Can Trust

Next up, let’s talk about those stacked EMAs. On the weekly chart, the shorter EMAs (like the 8 and 21) are sitting cleanly above the longer EMAs (like the 34 and 55).

Why is this important?

Stacked EMAs tell us we’re in a strong uptrend. They act as support levels during pullbacks, and when they’re lined up like this across multiple timeframes, it’s a sign that buyers are stepping in at higher prices.

In short, it’s a bullish structure you can trust. PANW’s EMAs are telling us this trend is legit and gaining strength, even while the broader market is struggling.

Relative Strength: Standing Out in a Tough Market

Now, let’s talk about relative strength. This is the kind of thing I pay close attention to, especially in a market like this. PANW has been outperforming the broader market, which is a big deal.

Sure, it’s lagging a bit behind names like ZS, OKTA, and CRWD, but it’s still holding up in a volatile environment. That’s what separates the winners from the losers. When a stock can keep moving higher while the market is chopping people up, it’s a sign that big money is flowing in.

Institutions aren’t just nibbling on this one—they’re making serious moves, and that’s the kind of action I want to follow.

Why Cybersecurity Is Still the Place to Be

Let’s zoom out for a second and talk about the bigger picture. The cybersecurity sector isn’t just hot—it’s absolutely essential right now.

And despite, all the uncertainty surrounding tariffs, here’s why this is still a solid sector:

• Cyber Threats Are Everywhere Cyberattacks don’t slow down just because the economy does. If anything, they’re ramping up. Governments and businesses have no choice but to keep spending on protection.
• The Cloud Is Exploding As more companies move to the cloud, remote work, and IoT, the attack surface gets bigger. Every endpoint is a vulnerability, and PANW is perfectly positioned to capitalize on this trend with its suite of cloud security solutions.
• Regulations Demand Action Strict data privacy laws like GDPR and CCPA mean companies can’t afford to cut corners on cybersecurity. PANW’s platformization strategy makes it a top choice for businesses looking to consolidate and stay compliant.

Your Action Plan

All right, so where do we go from here?

Here’s the deal: I don’t have a position in PANW yet, but this one is absolutely on my watchlist. The technicals look great:

• We’ve got a weekly squeeze building energy for a potential breakout.
• Stacked EMAs confirming a strong and healthy uptrend.
• Relative strength shows PANW is outperforming the market.

So here’s where I’m at with PANW. I don’t have a position yet, but this is absolutely at the top of my watchlist.

If PANW can start closing the gap and making a move toward its 52-week high, it could catch up to its peers in the cybersecurity space in no time.

The technical setup checks all the boxes—a weekly squeeze, stacked EMAs, and solid relative strength.

This is the kind of setup I want to focus on in a market like this.

If I decide to play it, I’ll probably look at calls a couple of months out—something with a nice delta to give myself plenty of time for the move to play out.

And if you’re looking for more setups like this, don’t forget to check out my Opening Bell Aftershocks strategy.

It’s designed to help you catch explosive moves just minutes after the market opens. This strategy has been a game-changer—it’s how I turned $37,000 into $2.7 million in just four years.

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As always, I’m keeping it light and nimble. The market’s still volatile, but that’s where the best setups tend to emerge.