Palantir Technologies (PLTR) Breaks Through

Palantir Technologies, Inc. (PLTR) is a holding company, which engages in the development of data integration and software solutions. It operates through the Commercial and Government segments. The company was founded by Stephen Cohen, Nathan Dale Gettings, Joseph Lonsdale, Alexander C. Karp, and Peter Andreas Thiel in 2003 and is headquartered in Denver, CO…

Take a look at the 1-year chart of Palantir (PLTR) below with my added notations:

Chart of PLTR provided by TradingView

PLTR had formed an important level of resistance at the $27.50 (green) mark. The stock had tested that area twice since March and finally broke above it yesterday. The stock should be headed higher, overall, from here.

PLTR broke a key level of resistance at $27.50. A long trade could be entered now, or on a pullback down to the $27.50 area, with a protective stop set below the level of entry.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT