PLTR Stock – Probably The Best “Meme” Stock Setup : wallstreetbets
Really favorable bullish technical setup going on in $PLTR right now. Also some confluence with a rotation into speculative growth/disruptors – which we haven’t seen happen in quite a while.
$PLTR 1Y 1D
I’ll break this down color by color to make it easy for you all to understand~
This is a descending channel dating back to February. During the week of 6/1 – we managed to break it up. You will notice many other “meme” stocks broke a similar setup recently before launching. Notice the gap right at 31.30. Gaps in the upper direction are (almost) always filled. We can logically conclude the goal of this descending channel break is to finally fill that gap – before deciding the next move.
Here we have an ascending wedge coming from upside. These patterns have a bullish bias. It’s not uncommon to see a small wedge/channel form on the breakout from a larger pattern. In fact – it’s actually quite bullish. If we get a daily close above the upper teal line – sitting around 25.87 on Monday – it would then “break out”, and likely trigger a much more volatile move towards that gap at 31.34.
Volume is trending upwards as the ascending wedge trends upwards. This is supportive of the trend and a bullish data point.
These are key price levels near the setup. When we are below, they are resistance – when we are above, they are support. As you can see – the nearest support below the wedge isn’t until 22.70. On a failed breakout – it’s likely we don’t stop dropping until we hit this. For the upside – the nearest resistance isn’t until 29.94 – this is actually a thick supply zone with multiple levels. While it’s likely we go the distance and fill that gap at 31.34 – I would unload a good bit of your position at this resistance.
There are two optimal entries for this setup –
On a trip to that point of control @ 24.53. This is where the most business has been done in the past year and buyers/sellers like to reposition here. It’s also the low end of the wedge – which means below this (on a daily close) – you would look to exit, if you took this entry. This provides a very tight and favorable margin of error.
On a daily candle close above that upper teal line – @ 25.87 Monday – sloping up each day by about 0.06. You would then stop out if we got a daily candle close below that same line – also providing a nice margin of error.
If you took entry 1 – you would stop out on a daily candle close below 24.53.
If you took entry 2 – you would stop out on a daily candle close below the teal line around 25.87 Monday sloping up each day by about 0.06.
Both entries would target 29.94 (take 3/4 off) and then that gap at 31.34 (I would exit here).
Safe: 08/20/2021 PLTR 30c
Risky: 07/16/2021 PLTR 30c
Keep in mind technical analysis is a road map, not a crystal ball. I’m providing the most high probability entries & exits – with the most favorable risk/reward ratios. I am not making an absolute prediction of future prices.
Not Financial Advice