Long
$PLTR - Two possible paths
Here is a bullish and bearish count for PLTR. Please note that at this time, my bias is towards the bullish count.
The main question is whether we have hit the cycle 2 bottom at 17.06 or not. If that May 11 low was the bottom, then we are within primary wave 3 of cycle 3. This would be the most bullish place where we can expect the biggest gains.
If that $17.06 on may 11 was not the low but just wave A of a very large 5-3-5 zigzag, that makes the June 28 $27.50 high the wave B top, and we are gonna continue down for wave C around $10 near IPO prices.
$17 is the key level to watch. Below 17, we would invalidate the bullish thesis by having a close under the wave W close. However this would also mean that cycle wave 2 would retrace more then 78.6% of cycle wave 1 which seems excessive at this stage. This is why i am leaning bullish at these levels (the daily RSI is also at oversold levels). Under $18 i'd get weary and under $17 i would cut my losses and wait to see how price plays out.
The best strategy here in my opinion is leaps for $35 and $40 strikes as IV is low right now and you could buy lots of time for fairly cheap premium.
You could also buy $24-$26 OTM calls with a tighter stop at around $18 about 4-6 weeks out once we hit $20 in the next few days.
Hope this plays out and pays out! Let me know what you guys think.
The main question is whether we have hit the cycle 2 bottom at 17.06 or not. If that May 11 low was the bottom, then we are within primary wave 3 of cycle 3. This would be the most bullish place where we can expect the biggest gains.
If that $17.06 on may 11 was not the low but just wave A of a very large 5-3-5 zigzag, that makes the June 28 $27.50 high the wave B top, and we are gonna continue down for wave C around $10 near IPO prices.
$17 is the key level to watch. Below 17, we would invalidate the bullish thesis by having a close under the wave W close. However this would also mean that cycle wave 2 would retrace more then 78.6% of cycle wave 1 which seems excessive at this stage. This is why i am leaning bullish at these levels (the daily RSI is also at oversold levels). Under $18 i'd get weary and under $17 i would cut my losses and wait to see how price plays out.
The best strategy here in my opinion is leaps for $35 and $40 strikes as IV is low right now and you could buy lots of time for fairly cheap premium.
You could also buy $24-$26 OTM calls with a tighter stop at around $18 about 4-6 weeks out once we hit $20 in the next few days.
Hope this plays out and pays out! Let me know what you guys think.
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.