Some trading thoughts on Palantir ($PLTR)…and some inside baseball on Nvidia ($NVDA) – August 30, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Palantir ( NYSE: PLTR ), but I also want to say, let’s get over NVIDIA ( NASDAQ: NVDA ). If you’re fixated on NVIDIA ( NASDAQ: NVDA ), it’s an awesome company, they reported monster numbers. However, the stock is in consolidation.
If you didn’t have NVIDIA ( NASDAQ: NVDA ) here, let’s say that’s gone and you’re just looking at a chart, you would say, that’s pretty impressive, I bet a lot of people made money. But right now it’s printing lower highs, I think I’m just going to watch this one.
You wouldn’t be looking at it every day to trade it. What you would do is, you would set an alert right around $130.00, and then you would forget all about this. You literally would forget all about it because it’s not NVIDIA ( NASDAQ: NVDA ), it’s just a chart.
Well now, it is just a chart. We could see a positive catalyst on NVIDIA ( NASDAQ: NVDA ), where if they announce something like, Blackwell chips are shipping now and they’re awesome. We’re making a crapload of money, it’s unbelievable. We could see a move in the stock, but would it run above 140.00? This is a pretty solid ceiling here.
The bottom line is this, $140.00 is a solid ceiling now. And it is going to take a lot for NVIDIA ( NASDAQ: NVDA ), after the run that it’s had, it’s going to take a lot for NVIDIA ( NASDAQ: NVDA ) to come up to a new high. I’m not saying that it won’t, I’m saying that I want to ignore it until it gets up, we’ll say to 130.00.
I think I’ve already set one stop, but I’m going to set another one and I’ll get the Double Mint Twins, double my fun here at $130.00. That’s what I’m looking for in NVIDIA ( NASDAQ: NVDA ), a breakout above 130.00. Until that happens it would be impossible for me to care less. I would rather look at Boeing than NVIDIA ( NASDAQ: NVDA ). So anyway, that’s it for NVIDIA ( NASDAQ: NVDA ), there, I got that off my chest.
With Palantir ( NYSE: PLTR ), this is a totally different deal. I really like the way this is trading. You can see it’s up at the top of the channel here on the weekly chart, so it’s not a good entry if you’re looking at the weekly chart, it’s just not. Just to give a tip of the hat to the pattern, you want to see the stock give you a deeper pullback before you load the boat here.
However, as I look at the daily chart this is what I see, it’s the same chart divided by five. But I see an uptrending 50-day moving average. I see the zigzags, I see this big washout here, and then a subsequent rally higher. And then I see a low-volume, look at the volume here, I see a low-volume pullback, and from the very high to the very low, it was only 10 percent on light volume.
That is not a lot of selling pressure, that is some buying interest that soaks up whatever supply there is. So now, if you’re a trader I would be looking at $30.00 as the drop-dead level. If it falls below 30.00, I’m out of there. So what’s your risk then? Your risk is a little over 5 percent, maybe 6 percent on this trade.
Your potential reward, let’s say it’s goes up, here it continues to make higher highs and higher lows. You could expect maybe 8 or 9 percent on the upside. I don’t know, I don’t like to predict, but this is just the way I would frame this trade, I’m risking about 3 percent on the downside, and I put my stop a little bit below 30.00.
So anyway, that’s what I’ve got for you on Palantir ( NYSE: PLTR ), and NVIDIA ( NASDAQ: NVDA ), which is kind of dead to me. Even though I love the company, they’re really game-changing, but you know what’s not game-changing for me? I don’t like charts like this.
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