PLTR 

I want to go back to Palantir ( NYSE: PLTR ) because, frankly, a lot of stocks just simply aren’t working so why do I want to bang through a list and say, hey, this isn’t working, this isn’t working, this isn’t working. It’s a little bit like saying, see that ledge over there? Don’t jump off.

Palantir ( NYSE: PLTR ) is working. If you look here at the way this stock has been trading over the last week, on Monday, okay fine, the stock hit a low, bounced off the 200-day moving average. But look at what’s happened since then, on each successive day we have had a higher intraday low each day. That means that the sellers are getting less and less aggressive and the buyers are willing to accept a higher price than they were yesterday. To put it succinctly, the sellers are getting weaker, the buyers are getting stronger.

And then on the other side of the coin, this is the high here of 26.24, that’s where sellers said, okay, I’m selling. The buyers say, okay I will take all you’ve got right here. And then that’s it, they pulled back. So the following day the sellers are saying, do you know what? Yesterday, 26.24, I don’t think I am going to sell then. And so then the next day the high was 26.70. It doesn’t seem like a lot, this is not a super volatile stock, actually. And then the day after that the high was 28.79. And then of course today the stock was very close to pushing through 30.00.

The point is, on each successive day those that were holding the stock were less eager to sell. And at the same time, you see this big, big buying pressure. And I know the call volume was pretty big on this stock. Okay, fine. That’s Najarian’s thing, not mine. The point is, this is a stock that is under institutional accumulation. You don’t get a stock trading over 100 million shares traded if it’s not institutions.

I like the way this stock is trading. To say, oh, it’s going to 30.00, that’s kind of a, well, duh. My initial price target on this, again, this is a weekly chart, would be 35.00. Beyond that, I have no idea. Just between you and me, we are probably looking at 40.00 but that would be a few months from now. And I seriously doubt whether it would happen before they report earnings on 11/11/21.

So I would just be holding this stock, I am holding this stock, this is my biggest position. Hold this stock, just let it run. Remember, you make the money in between the buy and the sell, not when you sell. You make the money on what the stock does in between when you buy and when you sell. I just don’t think it’s time to be selling yet.

PLTR 

This is Scott with your Chart of the Day. I want to follow up on Palantir ( NYSE: PLTR ). Dan Fitzpatrick, last night, for Fitz in Five talked about Palantir ( NYSE: PLTR ) and this key 27.50 level that we’ve been watching for a little while at stockmarketmentor.com.

This has been a clearly defined level of resistance. It was resistance back in March, back in June, and even a little bit leading up to this week. We just kind of bubbled underneath that 27.50 level earlier this month and today finally broke through and did it on higher than average volume, so a bunch of us added to our positions at Stock Market Mentor.

I ended up buying throughout the week because I was anticipating this move higher. I didn’t know that it was going to go higher but I could kind of see what was happening with the chart. And then today, with a move through that level with volume, my alerts went off. You can see I had two different alerts set on this stock and I added and got a full position here now in Palantir ( NYSE: PLTR ).

Now, the thing that I like about this setup was that it not only looked great on the daily chart but also on the weekly chart as we were making a new weekly high here on PLTR ( NYSE: PLTR ). What we want to see from the stock tomorrow is that we maintain a close above this 27.50 level.

If we come back below 27.50 this week it’s not really great because, yes, we made a higher high but we weren’t able to close above that higher high. As someone who is a swing trader the close definitely matters because the close tells me that the buyers wanted the stock so much that they just kept pushing the price up.

Now, if you missed this move today one thing that I would look for is potentially a little bit of a backtest of this breakout level. You don’t always have to catch the stock the day it breaks out. A lot of breakouts, especially in this market, have been backtested.

I would look for a little bit of a backtest to 27.50 over the next few days, potentially as a way to get involved with the stock if you missed the initial breakout here today. But if you are already long the stock, like I said, ideally we are able to hold above and close above that 27.50 level into tomorrow. So that’s what I will be looking for on Palantir ( NYSE: PLTR ).