Is Palantir (PLTR) Losing Some Steam From Fading AI Hype?
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It’s important to first point out today that our trade has not yet confirmed on the stock we are watching, so once again, practicing our patience is key here as it is with all our trades. However, this is a bearish looking market, even if this week is spent bouncing around as we are still at a strong support level, as well as a demand zone.
The trade we have in focus today is on Palantir (PLTR) and as you can see by the chart in the video posted below, we have a textbook bearish pattern developing in the form of a head and shoulders pattern. You can see a clearly defined left shoulder, which is seen as a lower higher as compared to the head, the highest point and finally rounded out by one more lower high.
The neckline is the point of interest for this pattern to confirm as illustrated by the solid green line. Once price breaks AND holds under this neckline, the trade could be considered as confirmed and bearish trades could enter with a stop set at a little bit above the neckline.
Your stop should always be placed, either physically or mentally, at a level where your trade become invalidated. You can also set a stop at a percent or dollar loss that is predetermined, as in set before you enter the trade.
The most important thing in trading is capital preservation. The longer you can stay in the game, the more you’ll learn and the more experience you’ll gain. This will ultimately lead to your developing your edge and system to consistently make profits.
For this trade in particular, both the scalpers and swing traders could get in on this trade. Meaning, this trade setup could turn from being used as a short term scalp to becoming a longer term swing when you look where the next level of support is, 12 and then lower under 10.
This is another trade that you’ll want to keep on watch as this could be a very big winner should this bearish chart pattern confirm and the stock give way to lower prices. Make sure to remember your patience and avoid jumping the gun on this trade.
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