Those of you who have been reading this blog for the last year, know that I've been watching Palantir for quite some time now. The large skyscrapper volume is just impossible to ignore. That type of buying is not "your Aunt Suzy" buying as William O'Neil would say. It is funds and institutions coming in to purchase the stocks. This makes sense given Palantir's strong earnings and sales growth.
I traded PLTR in 2023, but was knocked out as it corrected. I've learned not to take getting stopped out as a sign that the stock is forever broken. Instead, it often just means the stock may need some more time. In fact, often when stocks set up again later, the subsequent setup is even stronger as more weak hands have been shaken out.
PLTR looks to be forming a very large cup and handle base. The low of the handle seems to be forming near the 40-week moving average. My goal is to see if I can take a pilot position somewhere near the lows of the handle, either near the 200-day or 50-day moving average. Then, I will look to average up and place a second purchase at higher levels if PLTR sets up again. Trading this way will allow me to build a large position over time while at the same time keeping my risk in check.
Risk right. Sit tight.
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