There are occasions when the worth motion of a inventory is value analyzing additional. This text is a follow-up to final week’s StockCharts Technical Rank (SCTR) Report choose, Palantir Applied sciences (PLTR). The inventory bought off considerably on Monday, and, within the weblog submit, I discussed that I’d purchase PLTR if the inventory worth pulled again and reversed. I used the 15-day exponential transferring common (EMA) as a assist degree, however was prepared to tighten it if vital.
It simply so occurred that PLTR bought off on Monday, after which I monitored the inventory intently. Monday’s low reached the low of the earlier 5 buying and selling days and bounced from there (blue dashed horizontal line within the chart under). That degree aligns with the 10-day EMA. On the every day chart, the final three candlestick bars have comparatively massive worth ranges. The final bar reveals extra shopping for strain. Is PLTR exhibiting indicators of transferring larger? To reply this query, you might want to take a look at the symptoms.
FIGURE 1. DAILY CHART OF PALANTIR STOCK. After hitting a excessive on November 15, PLTR pulled again to the lows of the previous few buying and selling days (blue dashed line). This aligns with the 10-day exponential transferring common.Chart supply: StockCharts.com. For academic functions.
The SCTR rating stays at a excessive 99.5, indicating the inventory is technically robust. Let’s flip to the opposite circumstances for coming into an extended place in PLTR.
- Quantity. The overall buying and selling quantity is inadequate to persuade me the upward worth transfer shall be sustained.
- Momentum. The relative power index (RSI) is weakening, though barely above 70.
- Overbought/oversold. The total stochastic oscillator stays in overbought territory, though the %Okay and %D strains have converged and are at comparable ranges.
On Tuesday, PLTR bought off in early buying and selling together with the remainder of the broader indexes. Nonetheless, as soon as issues began to show round, PLTR’s inventory worth rose, closing at $62.98. The worth motion would not verify a purchase as of Tuesday’s shut, though that might change tomorrow.
The Recreation Plan
- If PLTR has upside momentum on Wednesday morning, with excessive quantity, a rising RSI, and the stochastic in overbought territory, I’ll enter an extended place. I would use the assist of the 10-day EMA as a cease loss degree and exit the place if worth crosses under the EMA.
- If worth would not transfer a lot on Wednesday, I would wait patiently for the opportune entry level.
- If worth reveals draw back motion (i.e. PLTR closes under the 10-day EMA or horizontal dashed blue line, the RSI and stochastic flip decrease), I would maintain PLTR in my ChartList however revisit it later. On condition that it’s an AI-related inventory that’s actively traded, it isn’t value dismissing the inventory.
Disclaimer: This weblog is for academic functions solely and shouldn’t be construed as monetary recommendation. The concepts and methods ought to by no means be used with out first assessing your personal private and monetary scenario, or with out consulting a monetary skilled.
