PLTR for tomorrow 8/29/2023
Price Action Overview:
Downtrend Channel: PLTR is currently trading within a well-defined downward channel. The price has been making lower highs and lower lows, indicating bearish momentum.
Key Resistance Levels:
$31.65 - $31.51: This area is a strong resistance zone where the price was previously rejected. It also marks the upper boundary of the red shaded area, indicating a significant supply zone.
$30.25: Another resistance level within the downtrend channel. The price attempted to hold above this level but failed, leading to a continuation of the downtrend.
Key Support Levels:
$30.00: The price is hovering around this level, which aligns with a psychological support level and the lower boundary of the current trading range.
$29.76 - $29.50: This zone is the next support area, with $29.50 being a significant low that might provide some temporary support.
$29.15: The most recent low marked on the chart. If the price breaks below this level, it could lead to further downside.
Indicators:
Stochastic Oscillator: The stochastic oscillator is currently in the oversold territory. This suggests that the selling momentum might be weakening, and a potential bounce could be imminent. However, in strong downtrends, the price can remain oversold for extended periods.
Outlook for Tomorrow:
Bearish Bias: The overall trend is bearish, and as long as the price stays within the downward channel, the path of least resistance is down. However, the oversold condition on the stochastic oscillator might lead to a short-term bounce.
Potential Scenarios:
Bounce Scenario: If the price finds support around $29.76 - $29.50, it might attempt a bounce. The first target for a bounce would be $30.25, followed by $30.50, which aligns with the upper boundary of the channel.
Breakdown Scenario: If the price breaks below $29.50 and particularly $29.15, it could lead to further downside, potentially targeting the $28.50 - $28.00 range.
Entry/Exit Points:
Long Entry: Consider entering a long position around $29.50 - $29.15, with a tight stop loss just below $29.00. This trade would be a counter-trend trade, aiming for a bounce. The target could be the $30.25 - $30.50 area.
Short Entry: If the price bounces back to $30.25 - $30.50 and shows signs of weakness, this could be a good area to enter a short position, aiming for a move back down to $29.50 or lower.
Stop Loss: For longs, a stop just below $29.00; for shorts, a stop just above $30.50.
Final Thoughts:
Given the current downtrend, the overall sentiment is bearish, and caution is advised when taking long positions. If you're looking for a safer play, waiting for a clear break of the downward channel (either up or down) might offer more reliable entry points.
Downtrend Channel: PLTR is currently trading within a well-defined downward channel. The price has been making lower highs and lower lows, indicating bearish momentum.
Key Resistance Levels:
$31.65 - $31.51: This area is a strong resistance zone where the price was previously rejected. It also marks the upper boundary of the red shaded area, indicating a significant supply zone.
$30.25: Another resistance level within the downtrend channel. The price attempted to hold above this level but failed, leading to a continuation of the downtrend.
Key Support Levels:
$30.00: The price is hovering around this level, which aligns with a psychological support level and the lower boundary of the current trading range.
$29.76 - $29.50: This zone is the next support area, with $29.50 being a significant low that might provide some temporary support.
$29.15: The most recent low marked on the chart. If the price breaks below this level, it could lead to further downside.
Indicators:
Stochastic Oscillator: The stochastic oscillator is currently in the oversold territory. This suggests that the selling momentum might be weakening, and a potential bounce could be imminent. However, in strong downtrends, the price can remain oversold for extended periods.
Outlook for Tomorrow:
Bearish Bias: The overall trend is bearish, and as long as the price stays within the downward channel, the path of least resistance is down. However, the oversold condition on the stochastic oscillator might lead to a short-term bounce.
Potential Scenarios:
Bounce Scenario: If the price finds support around $29.76 - $29.50, it might attempt a bounce. The first target for a bounce would be $30.25, followed by $30.50, which aligns with the upper boundary of the channel.
Breakdown Scenario: If the price breaks below $29.50 and particularly $29.15, it could lead to further downside, potentially targeting the $28.50 - $28.00 range.
Entry/Exit Points:
Long Entry: Consider entering a long position around $29.50 - $29.15, with a tight stop loss just below $29.00. This trade would be a counter-trend trade, aiming for a bounce. The target could be the $30.25 - $30.50 area.
Short Entry: If the price bounces back to $30.25 - $30.50 and shows signs of weakness, this could be a good area to enter a short position, aiming for a move back down to $29.50 or lower.
Stop Loss: For longs, a stop just below $29.00; for shorts, a stop just above $30.50.
Final Thoughts:
Given the current downtrend, the overall sentiment is bearish, and caution is advised when taking long positions. If you're looking for a safer play, waiting for a clear break of the downward channel (either up or down) might offer more reliable entry points.
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.