PLTR Tomorrow Report 8/5Recession Information
The likelihood of a recession in the U.S. remains significant, with various indicators and experts suggesting a high probability. Economic models predict a 56% to 85% chance of a recession by 2024 due to high inflation and interest rates, alongside global economic slowdowns in regions like Europe .
Technical Analysis
Chart Overview: The chart shows PLTR on a downtrend, with a significant volume profile indicating resistance around the $28.69 level and support at $23.75. The price is currently below the volume-weighted average price (VWAP), indicating bearish sentiment.
MACD Indicator: The MACD shows a potential bullish crossover, which could indicate a short-term reversal.
Trendline: The price is struggling to break above the descending trendline, a critical resistance point.
Earnings Report Impact
PLTR is set to release its earnings report tomorrow. Earnings reports can significantly impact stock prices, often leading to increased volatility. Positive earnings could break the downtrend, while disappointing results might accelerate the decline.
Market Sentiment
Given the current macroeconomic environment with recession fears, the broader market may exhibit bearish behavior, particularly if earnings results and economic data continue to disappoint.
Recommendation
Long Position: Consider going long if PLTR breaks above the descending trendline with strong volume, indicating a bullish reversal. Watch for positive earnings results and broader market sentiment.
Short Position: If the price fails to break the trendline and continues to show weakness, shorting could be a strategy. Negative earnings or broader market downturns would strengthen this case.
Technical Analysis for PLTR
Support and Resistance Levels
Resistance Levels:
$28.69: Significant resistance indicated by volume profile.
$26.00: Previous support now acting as resistance.
Support Levels:
$24.00: Recent low and psychological support.
$23.75: Lower bound indicated by volume profile.
Entry and Exit Points
Long Entry:
Above $26.00 on strong volume and breaking the descending trendline.
Confirmed by a MACD bullish crossover.
Exit for Long:
Near $28.69 (first resistance).
If price falls back below $26.00.
Short Entry:
Below $24.00 if price fails to break above $26.00.
Confirmed by bearish continuation on MACD.
Exit for Short:
Near $23.75 (first support).
If price climbs back above $24.00.
Strategy
Risk Management: Use tight stop-loss orders slightly below the support for long positions and slightly above the resistance for short positions.
Monitoring: Watch for earnings report impacts and overall market sentiment. Adjust positions accordingly based on new data and price action.
This approach combines technical levels with broader market context for trading strategy.
