Watch for pullbacks on $PLTR – October 10, 2023
This is Scott with your Chart of the Day. Let’s get into PLTR ( NYSE: PLTR ), Palantir; popping on geopolitical news yesterday. And finally getting above a resistance level that I have been watching since August-September, just recently.
Now, we have a break out of this nice long base of consolidation. And today, a bit of a selloff as the stock is now extended above that 8-day exponential period moving average, almost 8 percent. So what do you do with it now? If I was long this stock I think you would want to consider at least moving a stop up or staggering some stops just in case the stock pulls back to support.
If it does pull back to support and you get a nice green day bounce, off the 8-day, off the 21-day, or heck, even off the 50-day, I think those could be buyable bounces and low-risk entries close to some pretty clear support zones. And that is kind of what I am looking for, as I wasn’t really ready for this breakout and not really positioned for it.
I see this stock, I understand the thesis, and I think I missed the move. But I also know, especially in this market, stocks that get extended above their moving averages tend to fall back to support. And so now I want to watch for that fallback to support and a potential buy bounce off of some key moving averages.
I think right around that 16.50 level could be interesting if the stock does fall back into this consolidation base. I want to point out that level in case you’re like me and missed this trade.
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