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UPDATE on 5 Cybersecurity Stocks - Swing Trade Levels


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On November 6, I posted a few swing trade levels for 5 cybersecurity stocks. The format was left pretty bare, as I felt there was nothing any narrative could have added that the technical levels themselves wouldnt already have said.


But again, thats something that you should already know about financial writing. No matter how much a narrative enhances the data, it can only enhance data on a particular level by masking or effacing it on another. With insight comes blindness, and with blindness you are often forced to mask it with some insight.


Now that youve completely lost confidence in your writer here, lets follow up on the levels, this time with an attempt at narrative.


Palo Alto Networks (PANW)


November 6 scenario


November 14 scenario


Resistance at 191.92 has been tested three times. Support at 175.43 has been tested twice. Its a classic consolidation scenario, but with a technical downside bias in the short-term.


ZScaler Inc (ZS)

November 6 scenario



This stock broke out of its resistance at 39.40 and we had our swing trade target at 43.14.


November 14 scenario



As you can see, it established a swing high (1) at 42.48, just shy of our initial 43.14 target. However, it also established a higher swing low (2) at 38.07, which technically makes this something of a short-term uptrend. Bias is toward the upside. But take a look at that volume...its dwindling.


Okta (OKTA)

November 6 scenario



November 14 scenario



We left off at (1) where our trend bias was bearish. But we also kept our eye on the upside swing trade level just in case the stock broke toward the upside. And thats exactly what had happened (2) as it broke above resistance at 60.96 and hit its short term target at 62.92 during a single trading session. At this point, new swing levels would have to be redrawn.


Qualys Inc (QLYS)


November 6 scenario


November 14 scenario



Extended consolidation. Nothing much happening here.


Fortinet Inc (FTNT)

November 6 scenario



November 14 scenario


Following up on the breakdown (1) at 76.02, our bias was toward the downside. Following classic downtrend criteria (lower lows, lower highs), FTNT established a lower swing high (2) at 79.49. Currently at (3), it appears to have set up a support level at 72.65. Should it break below this level, we expect it to hit the first downside target at 68.80.


Heres the thing, if you were to enter this trade at 72.65, then youd place a stop loss at 79.49, the nearest swing high, as a break above this level would invalidate the downward bias.


Well, those are the results for now. Have a Happy Thanksgiving everyone!


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Halifax America LLC is now shifting toward coverage of stocks in disruptive industries including cybersecurity, artificial intelligence, and IoT. If you would like to receive Halifax Americas free weekly newsletter, which covers these industries and more, please send an email to info@halifaxamerica.com.



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About the author


Karl Montevirgen is an independent content writer. Having been involved in the commodities and FX markets for the last 9 years, Karl writes for several companies and publications in the finance space. 

You can view his extended profile, list of publications, and theoretical content work on his LinkedIn page. 

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