Cyber Surge: Fortinet and Friends Poised for a Breakout

For a moment there, it was looking a little shaky there for cybersecurity’s best-and-brightest.

Palo Alto, most notably dropped 20% on little-to-no news. But, over the last few trading days, the three most well-known names in cybersecurity – Crowdstrike (CRWD), Fortinet (FTNT), and Palo Alto Networks (PANW) have found their footing.

Now, all three look to be gearing up for meaningful breakouts.

Beyond the activity highlighted in my slides, all three have posted a bullish 5-13d EMA crossover, a sign of positive short-term momentum.

Fortinet (FTNT)

Personally, I’m taking a flyer on FTNT breaking through $100 and rallying into new all-time high territory. I’ll use the 50d SMA as my stop to manage risk. As per usual, this isn’t advice. Rely on your own process and discipline.

Crowdstrike (CRWD)

The same strategy can be applied to CRWD. Get in now, play for bullish action at the all-time-high around $400, use the 50d SMA as a stop.

Palo Alto Networks (PANW)

I would prefer it clear the 50d SMA before entering a trade in PANW. It’s the only real obstacle in the way of the all-time high. In my opinion, the trade is cleaner and easier to manage with it in the rearview. That said, if I had to execute this trade tomorrow, I would use the 21d SMA as the stop.


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