(PLTR): Continuation or Pullback? Nov. 18, 2024
PLTR has been rallying within a rising wedge pattern, signaling strong bullish momentum. However, price action near resistance levels suggests the potential for either a breakout or a pullback. Let’s outline key trading setups for scalping and swing trades based on the current technical structure.
Technical Overview:
Market Structure:
Trend: PLTR remains in a strong uptrend, forming higher highs and higher lows within a defined wedge.
EMA Levels: The 9 EMA (purple) and 21 EMA (blue) are trending upward and acting as dynamic support.
Key Levels:
Resistance Zones:
$66.50 – Immediate resistance near the wedge upper boundary.
$67.50 – Major resistance from previous highs.
Support Zones:
$65.00 – Current support at the wedge midline.
$63.50 – Strong demand zone and previous breakout level.
$58.50 – Critical support from the recent consolidation zone.
Supply and Demand Zones:
Demand Zone: $63.00–$63.50, where buyers stepped in previously.
Supply Zone: $66.50–$67.50, where sellers have historically taken control.
Indicators:
MACD: Histogram shows bullish momentum, but with signs of potential weakening as the price nears resistance.
Volume: Increased volume on green candles signals strong buyer interest.
Pattern:
Rising wedge with a potential for a breakout above $66.50 or a pullback to the lower boundary.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy on a breakout above $66.50 with strong volume.
Target 1: $67.00 (quick scalp).
Target 2: $67.50 (major resistance).
Entry for Short:
Sell on rejection at $66.50 or a breakdown below $65.00.
Target 1: $64.00 (scalp to next support).
Target 2: $63.50 (demand zone test).
Stop Loss:
Long: Below $66.00.
Short: Above $66.80.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds $65.00 and breaks above $66.50.
Target 1: $67.50 (major resistance).
Extended Target: $70.00 (psychological level and breakout extension).
Stop Loss: Below $64.50.
Bearish Scenario:
Sell if price breaks below $63.50 with volume.
Target 1: $61.50 (key support level).
Extended Target: $58.50 (demand zone).
Stop Loss: Above $64.00.
My Thoughts:
For Scalping: Focus on the $65.00–$66.50 range for quick trades, particularly near the wedge boundary. Volume confirmation is key.
For Swing Trades: Watch for a breakout above $66.50 to continue the bullish trend or a breakdown below $63.50 for potential bearish opportunities.
Directional Bias:
Short-term: Bullish above $65.00 with the potential for a breakout.
Mid-term: Neutral-to-bullish unless price breaks below $63.50.
Actionable Suggestions:
Monitor the $66.50 level for breakout/rejection signals.
Use $65.00 as a key level for intraday trading setups.
Avoid entering trades in the middle of the range ($64.00–$65.00) to minimize noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
Technical Overview:
Market Structure:
Trend: PLTR remains in a strong uptrend, forming higher highs and higher lows within a defined wedge.
EMA Levels: The 9 EMA (purple) and 21 EMA (blue) are trending upward and acting as dynamic support.
Key Levels:
Resistance Zones:
$66.50 – Immediate resistance near the wedge upper boundary.
$67.50 – Major resistance from previous highs.
Support Zones:
$65.00 – Current support at the wedge midline.
$63.50 – Strong demand zone and previous breakout level.
$58.50 – Critical support from the recent consolidation zone.
Supply and Demand Zones:
Demand Zone: $63.00–$63.50, where buyers stepped in previously.
Supply Zone: $66.50–$67.50, where sellers have historically taken control.
Indicators:
MACD: Histogram shows bullish momentum, but with signs of potential weakening as the price nears resistance.
Volume: Increased volume on green candles signals strong buyer interest.
Pattern:
Rising wedge with a potential for a breakout above $66.50 or a pullback to the lower boundary.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy on a breakout above $66.50 with strong volume.
Target 1: $67.00 (quick scalp).
Target 2: $67.50 (major resistance).
Entry for Short:
Sell on rejection at $66.50 or a breakdown below $65.00.
Target 1: $64.00 (scalp to next support).
Target 2: $63.50 (demand zone test).
Stop Loss:
Long: Below $66.00.
Short: Above $66.80.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds $65.00 and breaks above $66.50.
Target 1: $67.50 (major resistance).
Extended Target: $70.00 (psychological level and breakout extension).
Stop Loss: Below $64.50.
Bearish Scenario:
Sell if price breaks below $63.50 with volume.
Target 1: $61.50 (key support level).
Extended Target: $58.50 (demand zone).
Stop Loss: Above $64.00.
My Thoughts:
For Scalping: Focus on the $65.00–$66.50 range for quick trades, particularly near the wedge boundary. Volume confirmation is key.
For Swing Trades: Watch for a breakout above $66.50 to continue the bullish trend or a breakdown below $63.50 for potential bearish opportunities.
Directional Bias:
Short-term: Bullish above $65.00 with the potential for a breakout.
Mid-term: Neutral-to-bullish unless price breaks below $63.50.
Actionable Suggestions:
Monitor the $66.50 level for breakout/rejection signals.
Use $65.00 as a key level for intraday trading setups.
Avoid entering trades in the middle of the range ($64.00–$65.00) to minimize noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
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