Let’s follow up on Palantir $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 ).