PLTR: Opportunity ahead?
Hello traders and investors! Let’s talk about PLTR today! This stock is very popular now, and it is going up sharply, but are any reasons to worry about it? Let’s see.
In the hourly chart we have a false breakout of a bearish pivot (green line at $ 26.14). PLTR did a breakout and it quickly hit the next support level, which is the pink line at $ 24.25 (previous top), and now it is recovering very well.
If PLTR closes above the green line and above the 21 ema, it’ll be a good sign. But PLTR must not lose the pink line, as this could be a bull trap!
But let’s say it is a bull trap, and PLTR is going to fall, where would be the next support level? Maybe the daily chart will have our answers:
It is interesting, because the green and the pink lines are Friday’s low and today’s low respectively.
The trend is clearly bullish, and there are no reversal signs ahead. Again, let’s keep in mind the 6th Tenet of Dow Theory: “Trends Persist Until a Clear Reversal Occurs”.
If PLTR loses the supports mentioned above, a pullback to the 21 ema is something we can expect, but again, this is not a reversal sign, just a pullback.
Pullbacks are healthy movements that all stocks do, and they usually give us opportunities to buy/buy back/buy more. Meaning, if PLTR drops to the $ 20 again, I see no reason to worry.
Also, the volume increased a lot during this bullish movement, which is good, as the volume confirms the trend.
In the short-term, I would monitor the support levels mentioned in this analysis, but I wouldn’t be too worried about it. And if you like this analysis, then please, support it! And follow me to keep in touch with my daily updates.
Thank you very much.
In the hourly chart we have a false breakout of a bearish pivot (green line at $ 26.14). PLTR did a breakout and it quickly hit the next support level, which is the pink line at $ 24.25 (previous top), and now it is recovering very well.
If PLTR closes above the green line and above the 21 ema, it’ll be a good sign. But PLTR must not lose the pink line, as this could be a bull trap!
But let’s say it is a bull trap, and PLTR is going to fall, where would be the next support level? Maybe the daily chart will have our answers:
It is interesting, because the green and the pink lines are Friday’s low and today’s low respectively.
The trend is clearly bullish, and there are no reversal signs ahead. Again, let’s keep in mind the 6th Tenet of Dow Theory: “Trends Persist Until a Clear Reversal Occurs”.
If PLTR loses the supports mentioned above, a pullback to the 21 ema is something we can expect, but again, this is not a reversal sign, just a pullback.
Pullbacks are healthy movements that all stocks do, and they usually give us opportunities to buy/buy back/buy more. Meaning, if PLTR drops to the $ 20 again, I see no reason to worry.
Also, the volume increased a lot during this bullish movement, which is good, as the volume confirms the trend.
In the short-term, I would monitor the support levels mentioned in this analysis, but I wouldn’t be too worried about it. And if you like this analysis, then please, support it! And follow me to keep in touch with my daily updates.
Thank you very much.
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