PANW Short-Term Reversal CALL – High-Probability Setup

PANW QuantSignals V3 – Short-Term CALL Trade (2025-11-19)

Trade Signal:

Direction: BUY CALLS (Long)

Strike Price: $202.50

Entry Range: $6.20–$6.40 (mid $6.30)

Target 1: $9.30 (50% gain)

Target 2: $12.40 (100% gain)

Stop Loss: $4.65 (25% risk)

Expiry: 2025-11-21 (2 days)

Position Size: 2% of portfolio

Confidence: 65% (Medium)

Market Analysis:

Trend: Katy AI shows NEUTRAL trend with slight downward bias (-0.32% over prediction period)

Price Action: Current $201.10 near session lows, bearish momentum (ROC: -5.62%)

Technicals: RSI 26.4 (oversold), resistance $203.99, support $199.00

Options Flow: Bullish, Put/Call Ratio 0.48, institutional call interest at $245 strike

News Sentiment: Positive – IBM quantum-safe partnership, strong earnings focus

Volatility: Medium – technical bounce potential from oversold levels

Competitive Edge:

Oversold RSI + strong call flow creates a high-probability reversal setup

2-day expiry captures potential short-term bounce

Tight stop limits downside while allowing technical reversal play

Risk Notes:

Katy AI neutrality with slight bearish bias requires careful monitoring

Earnings not until 2026-02-11 – this is a technical/reversal trade, not earnings-driven

Low volume (0.8x average) suggests position size should be moderate

Strategy Rationale:

Overrides Katy AI neutrality due to strong technical and options flow evidence

Bullish reversal opportunity supported by oversold RSI, institutional calls, and positive news