Potential signal:
- I am a buyer on dips at this point, as the market continues to see bullish sentiment.
- At this point in time, I am a buyer of PLTR at the 148.20 level, with a stop at 140, and a target of 160.
- However, if we break above the 160.20 level, I am buying with a stop at 155 and a target of 168.
Palantir has been all over the place during the trading session here on Tuesday, which is not a huge surprise considering that the market on the whole has been a bit of a mess. That being said, we are fairly close to all-time highs and in fact did everything we could to break out to fresh all-time highs during the session.
That being said, I like the idea of buying dips in this market, but keep in mind the earnings report comes out on Monday. So, the next couple of days could be a little bit of a sideways to lower pullback, but you should also keep in mind that Palantir will essentially move right along with the overall NASDAQ, and the NASDAQ has been very noisy over the last couple of weeks with Palantir being one of the stars. So, if Palantir starts to sell off, that’s going to start to cause the NASDAQ to have trouble, which will in turn be a feedback loop.
I personally welcome that feedback loop and would love to see it happen mainly so I can get into Palantir at one of these levels the $148.20 level scenario I’m looking for, and then the $131.50 level for support. If we break to a fresh new high above the $160.20 level, then I think we’ve got a scenario where we just continue the runaway move to the upside.
Earnings on Monday
Again though, I would point out you need to be very cautious with the idea of Monday being an earnings call. We’ll just have to wait and see how that reacts. But a lot of traders might try to jump out of their position. The earnings estimate is almost 14 cents. The revenue estimate is for $939 million approaching a billion dollars, which is outrageous. So obviously this is a market that is extraordinarily profitable. Those are pretty high metrics, especially in the earnings. So again, I look at it this way, if we start to sell off after the earnings call, that might be the opportunity that you’ve been looking for. Either way, I’ve got no interest in shorting.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.