PLTR Ready For A Big Move?

Palantir Technologies (PLTR) has consolidated pretty well here under some pretty stiff resistance. But before I get long, I would watch for the break above the nearly year-long resistance to trigger the setup.

Rising trend-line underneath makes a for a good way to manage the risk with a stop-loss, and to steadily increase that stop-loss too. The sector that it is trading in, Technology (XLK) has seen a pretty strong run of late, and could be getting gassed here, though evidence of that so far has been scant. But the Software Industry (IGV), has made a nice breakout of the symmetrical triangle that it recently formed, and now forming a shooting star on the daily chart. So keep in mind of what could be some external pressures coming down from tech and software if they start to cool off some here. Software has a nice rising trend-line in place, has made a higher-high and could consequently see a pullback to its trend-line which would make for a 10% pullback in the process for the industry. 

Back to PLTR though, a break below the rising trened-line on teh daily that I’ve marked with the red line on the chart above, would also mark break of its short-term direction and a reason not to remain in the trade, assuming it also closes below it too.

Finally, if the stock were to gap through the resistance, as has become very common place with most stocks these days, I wouldn’t chase it and instead would rather wait for a pullback to the breakout level where it successfully tests, holds and then starts to bounce from that level, before getting long.