PLTR Is Testing a Critical Breakdown Zone – Smart Money Might Be Watching This 👀
Technical Analysis & Trading Insights
PLTR has broken down from its rising channel and is now consolidating tightly around the $72–74 area. This zone represents a key point of interest where price is reacting along the lower bound of the descending wedge. Smart Money Concepts (SMC) show a clear Break of Structure (BOS) followed by CHoCH attempts that were swiftly rejected.
* Market Structure: We're in a strong bearish downtrend within a descending wedge. Current price action is hovering around a previous liquidity grab zone.
* MACD: While still below the signal line, histogram bars are showing slight momentum loss to the downside – suggesting early signs of buyer defense.
* Stochastic RSI: Deep in the oversold zone, curling upward – a classic signal for potential bounce or relief rally.
This confluence of compression inside a wedge, oversold momentum, and price hovering just above PUT support creates an interesting risk-reward scenario.
GEX & Options Sentiment
* Highest Negative GEX / PUT Wall: $70 – This is the strongest magnet for sellers and likely where dealers may flip.
* Massive Call$ Activity: A massive 134.4% call-dollar inflow indicates bullish options positioning, likely hedging or prepping for a reversal.
* IVR is at 130.4, and IVx average is 138.1, reflecting extreme implied volatility. This means premiums are high and markets are expecting big moves.
* Support Zones (Gamma Walls): $70 serves as the strongest gamma support.
* Resistance Zones: $83 to $90 is a heavy resistance area. If we get above $78.73 (local BOS resistance), $83 could be next.
Scenarios to Watch
Bullish Reversal Setup:
* A reclaim above $74 and breakout of the wedge could trigger a rally to $78.73 (BOS), then $83 (Gamma Wall).
* Watch for MACD crossover and RSI break above 20 as confirmation.
* Conservative entry: Wait for a retest of $74 as support.
Bearish Breakdown Setup:
* If $72 breaks with volume, price could rush to test the $70 PUT Wall.
* Breakdown below $70 could accelerate toward $65, with volume-driven stops getting triggered.
Thoughts for Investors & Traders
The macro backdrop is still shaky after the tariff-triggered selloff. PLTR, like many tech stocks, is in an oversold state but faces overhead gamma resistance and dealer hedging pressure. The safest approach for longer-term investors may be waiting for weekly structure to stabilize above $83, where demand zones and bullish structure will reassert.
For short-term traders, this is a classic liquidity sweep + reversal setup, but it needs confirmation. Use tight stops and avoid chasing.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk responsibly.
Technical Analysis & Trading Insights
PLTR has broken down from its rising channel and is now consolidating tightly around the $72–74 area. This zone represents a key point of interest where price is reacting along the lower bound of the descending wedge. Smart Money Concepts (SMC) show a clear Break of Structure (BOS) followed by CHoCH attempts that were swiftly rejected.
* Market Structure: We're in a strong bearish downtrend within a descending wedge. Current price action is hovering around a previous liquidity grab zone.
* MACD: While still below the signal line, histogram bars are showing slight momentum loss to the downside – suggesting early signs of buyer defense.
* Stochastic RSI: Deep in the oversold zone, curling upward – a classic signal for potential bounce or relief rally.
This confluence of compression inside a wedge, oversold momentum, and price hovering just above PUT support creates an interesting risk-reward scenario.
GEX & Options Sentiment
* Highest Negative GEX / PUT Wall: $70 – This is the strongest magnet for sellers and likely where dealers may flip.
* Massive Call$ Activity: A massive 134.4% call-dollar inflow indicates bullish options positioning, likely hedging or prepping for a reversal.
* IVR is at 130.4, and IVx average is 138.1, reflecting extreme implied volatility. This means premiums are high and markets are expecting big moves.
* Support Zones (Gamma Walls): $70 serves as the strongest gamma support.
* Resistance Zones: $83 to $90 is a heavy resistance area. If we get above $78.73 (local BOS resistance), $83 could be next.
Scenarios to Watch
Bullish Reversal Setup:
* A reclaim above $74 and breakout of the wedge could trigger a rally to $78.73 (BOS), then $83 (Gamma Wall).
* Watch for MACD crossover and RSI break above 20 as confirmation.
* Conservative entry: Wait for a retest of $74 as support.
Bearish Breakdown Setup:
* If $72 breaks with volume, price could rush to test the $70 PUT Wall.
* Breakdown below $70 could accelerate toward $65, with volume-driven stops getting triggered.
Thoughts for Investors & Traders
The macro backdrop is still shaky after the tariff-triggered selloff. PLTR, like many tech stocks, is in an oversold state but faces overhead gamma resistance and dealer hedging pressure. The safest approach for longer-term investors may be waiting for weekly structure to stabilize above $83, where demand zones and bullish structure will reassert.
For short-term traders, this is a classic liquidity sweep + reversal setup, but it needs confirmation. Use tight stops and avoid chasing.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk responsibly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.