Looks like we are close to being done with the major selling on PLTR.
It will be one to watch over the coming days. Personally this trader is starting to build a base position here.
I marked the levels that we should see over the coming weeks. With the higher ones being hard to get to quicker.
I think the rocket ride of last week is over, but what the next phase is for this stock depends on a few factors.
1) The selling: with a few firms calling for down grades and lower prices it is likely we might see some more selling.
The volume is increasing, but this takes me my next point. Right now it seems like there are not as many willing sellers
at these prices and we are starting to see more buyers. We can start to make a case for that the weak hands or FOMO traders are
now out of their positions and are no longer in the position to panic sell.
2) Volume picking up: if you look here on the hourly chart. Todays volume is notable higher on average than the past few days.
If this holds over the coming day(s) we should start to see a good base form and have a point to start to climb. Hopefully, it starts to
build into a bullish context, but it could at the same time just be buyers getting on since its over sold on the RSI.
Right now this could just be the start of the buying zone as marked on the chart; with multiple levels of buyers down to 20.00.
The further we drop the more willing buyers we should be running into. We can see from yesterday, were we should have found support we didn't as it gapped down overnight.
If this happens again it is likely the willing buyers are even further down than we think they are. Till we really start seeing bullish volume willl
be hard to know for sure.
3) MACD cross over: this comes part of the second point. MACD is a lagging indicator, as such it can be wrong; so that is of note.
However, we can see that the MACD has crossed over after hours. Which is on much much smaller volume that normal hours.
If PLTR can hold a few trading hours of bullish price action, this would improve the odds of a base to start to build higher.
Target: 27.50 -- I think this will be the most likely to see in the coming days.
Stop: 21.40 -- Below here we will probably bounce down 20.0 then slow creep down to 18 where more buyers should be waiting as that was a break out zone.
Best of Luck,
--d0x
It will be one to watch over the coming days. Personally this trader is starting to build a base position here.
I marked the levels that we should see over the coming weeks. With the higher ones being hard to get to quicker.
I think the rocket ride of last week is over, but what the next phase is for this stock depends on a few factors.
1) The selling: with a few firms calling for down grades and lower prices it is likely we might see some more selling.
The volume is increasing, but this takes me my next point. Right now it seems like there are not as many willing sellers
at these prices and we are starting to see more buyers. We can start to make a case for that the weak hands or FOMO traders are
now out of their positions and are no longer in the position to panic sell.
2) Volume picking up: if you look here on the hourly chart. Todays volume is notable higher on average than the past few days.
If this holds over the coming day(s) we should start to see a good base form and have a point to start to climb. Hopefully, it starts to
build into a bullish context, but it could at the same time just be buyers getting on since its over sold on the RSI.
Right now this could just be the start of the buying zone as marked on the chart; with multiple levels of buyers down to 20.00.
The further we drop the more willing buyers we should be running into. We can see from yesterday, were we should have found support we didn't as it gapped down overnight.
If this happens again it is likely the willing buyers are even further down than we think they are. Till we really start seeing bullish volume willl
be hard to know for sure.
3) MACD cross over: this comes part of the second point. MACD is a lagging indicator, as such it can be wrong; so that is of note.
However, we can see that the MACD has crossed over after hours. Which is on much much smaller volume that normal hours.
If PLTR can hold a few trading hours of bullish price action, this would improve the odds of a base to start to build higher.
Target: 27.50 -- I think this will be the most likely to see in the coming days.
Stop: 21.40 -- Below here we will probably bounce down 20.0 then slow creep down to 18 where more buyers should be waiting as that was a break out zone.
Best of Luck,
--d0x
Trade active:
Looks like we are building up. A little bit concerned that the volume is tapering off.
Will be watching
Will be watching