Here’s what Scott wants to see from $PLTR – July 8, 2022

by DAN PLTR 
This is Scott with your Chart of the Day. This weekend I want you to take a look at Palantir ( NYSE: PLTR ). Palantir ( NYSE: PLTR ) was a big winner as you know. Back in late 2020, it was a monster, it has given back a lot. But recently the chart has been quite constructive, we have a low down here at around 6.50. Then we have a higher low over here at around 7.50. So we have a low, a higher low, and a potential short-term trend change.

Now, I am not going to say this stock looks like it is going to go back up to $50.00. I don’t know if that is going to happen. I do know there is a ton of supply in this chart, a lot of people who bought this on the way down, are probably hoping to get back to their price. And so I do believe that if this trend change is real it’s probably not going to go up in a straight line, it’s going to be a lot of ebbs and flows.

What I do want to see from Palantir ( NYSE: PLTR ), at least in the short-term, is potentially a little break out of this consolidation base. You can see it basically went sideways here for 17-days. It popped up, fit a level of resistance, held near the 50-day and now we are right back at that resistance.

I do like the fact that this is still holding up above all the major moving averages. And the short-term moving averages, the 8-day, the 21-day, and the 50-day are all in order with the fastest on top. The 200-day is lurking underneath, and so if this does continue to the upside I would suspect that that downward-sloping 200-day moving average could act as resistance.

What I would love to see from Palantir ( NYSE: PLTR ) is a break out of this level and a short-term trend or maybe a longer-term trend testing the underside of that 200-day moving average. I do have a small position in this stock, it is just a placeholder right now. I am looking for that break of $10.32 coming on volume. It, kind of, broke out a bit here today but it wasn’t able to hold. And when it did go it didn’t really go on much volume, it just looked like it was getting back to a resistance zone.

The hourly trend still looks fine, though. And so I still think that this is a chart that is worth paying attention to. I want to see it get above that level, hold above that level, and do it on volume. So I think this is worth adding to your watch list. We’re trading it over at stockmarketmentor.com.

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