PLTR – Consolidation Break Imminent? Dec. 2PLTR is consolidating within a tightening range, showing signs of a potential breakout. This trading plan provides insights into price action, key levels, and trading setups for both scalping and swing trading opportunities.
Market Structure & Price Action:
* Recent Trend: PLTR has been trading sideways, forming a tightening wedge pattern between $64 and $68. The price is testing upper resistance at $67.50, signaling potential breakout energy.
* Liquidity Zones:
* Buyers have defended the $64 zone consistently, forming a strong demand area.
* Sellers are active near $67.50–$68, creating a supply zone that caps further upside.
Key Levels:
1. Resistance Zones:
* $67.50–$68: Immediate resistance zone where selling pressure increases.
* $70: Psychological level and key breakout target.
2. Support Zones:
* $66: Short-term support within the wedge.
* $64: Strong demand zone and wedge bottom.
Indicators:
* MACD (1-hour): The MACD is bullish, with a crossover indicating upward momentum, but histogram growth is flattening, signaling a possible pause or pullback.
* Volume: Relatively low volume suggests consolidation; a breakout will require higher volume for confirmation.
Trade Ideas:
1. Scalping Setup:
* Entry (Long): Above $67.50 with confirmation (strong bullish candles or increased volume).
* Target: $68.50–$69.
* Stop-Loss: Below $66.80.
* Short Setup: If price rejects $67.50, short below $66 targeting $64, with a stop above $67.
2. Swing Trading Setup:
* Bullish Case:
* Entry: On a breakout above $68.
* Target 1: $70.
* Target 2: $72–$73.
* Stop-Loss: Below $67.
* Bearish Case:
* Entry: Short below $64.
* Target 1: $62.
* Target 2: $60.
* Stop-Loss: Above $65.
Game Plan for the Week:
1. Watch for a breakout above $67.50 or a breakdown below $64, as these levels are critical for the next directional move.
2. Use lower timeframes (5-min, 15-min) to refine scalping entries based on breakout confirmation or rejection.
3. Stay patient during consolidation and wait for a decisive move with strong volume.
Thoughts & Outlook: Palantir's tightening range indicates that a breakout is imminent. A move above $68 could trigger bullish momentum, while a break below $64 may lead to a deeper pullback. Traders should stay vigilant and wait for volume confirmation before taking positions.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please conduct your own research and trade responsibly. Trading involves significant risk.
