Is Palantir ($PLTR) your pal? – August 14, 2024

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Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Palantir ( NYSE: PLTR ) today.

The stock is making, not all-time highs but pretty darn close. We’ve got to go back to 2021 to look at higher prices, and frankly, that’s COVID ago, so I don’t really care about that. But what I do care about is this, I actually care more about the weekly chart because we could see this big massive engulfing pattern, again, on a weekly chart, where you’re looking right here, two big down weeks in a row.

And then the following week, a huge massive week down that completely undercut this support right there, completely undercut it. And then screamed above this resistance here. In other words, the low of the week and the high of the week were totally eclipsed by the stock price. This is a big massive move on twice average volume. And now we have a continuation of that, and this is the weekly chart.

So as I look at this stock it sure looks like, to me, that it wants to go higher. Now there is some volatility here, certainly, but it does look like it will continue to move higher. Earnings aren’t an issue, they’re not until November. We look at the daily chart, and you can see what’s happening here. It’s tough to buy right now, this would be more of an impulse buy because it’s right up against resistance.

Support, if you wanted to be creative, you could draw a line there. I would just put it this way, you’d want to wait for the stock to be closer to the 50-day moving average before you took a position because that’s the median price. Sooner or later it’s going to come back to the 50, maybe not for a while but if you are buying it up here, frankly you’re chasing it. I think it’s a low-probability trade.

Definitely keep Palantir ( NYSE: PLTR ) on your list. If you’ve got to buy it, take a little bit, take a little piece, not a big deal. Just think of it as a mental health buy that you just want to be in on. Or you can do like I’m doing, just watch it every day and wait for your day.

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