Palantir’s Next Move: Key Levels to Watch for Tomorrow! Nov. 4,1. Trend and Price Action:
PLTR is currently in a descending channel, reflecting short-term bearish sentiment. The recent price action shows lower highs and lower lows, indicating that sellers are still in control.
The stock is trading below its moving averages, suggesting continued pressure to the downside unless a reversal occurs.
2. Support and Resistance Levels:
Immediate Resistance: Around $45.07 - $45.75, a key level that could act as a barrier if PLTR tries to rally.
Immediate Support: Around $40.80, a level that has held previously and could offer a potential buying opportunity if tested again.
Additional Support: Near $40.00, providing a psychological floor if bearish momentum intensifies.
3. Volume Analysis:
Volume has been relatively consistent, but no significant buying pressure has emerged yet. Watch for increased volume at the key support levels, as it could signal potential accumulation by buyers.
4. MACD Indicator:
The MACD is currently in a bearish stance, with the MACD line below the signal line. This suggests downside momentum, though any crossover could signal an early sign of reversal.
5. Price Action Setup:
Bullish Scenario: If PLTR breaks above the upper descending trendline, especially with strong volume, it could push toward the resistance around $45.07. A breakout above $45.75 would signal a stronger reversal.
Bearish Scenario: Failure to hold above $41 could lead to a test of $40.80 and possibly even $40.00. A breakdown below these levels would reinforce the bearish trend.
My Thoughts:
Current Bias: Cautiously bearish unless PLTR can show signs of breaking out of its descending channel with increased volume.
Suggested Approach: Watch for price action around the key support and resistance levels, and consider using tight stops due to the volatile nature of this setup.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Trading stocks carries risk. Always conduct your own research or consult a financial advisor.
