Transcription
Hi, this is Kri Rtech with Wicked Stocks, bringing you an individual stock pick in Palantir Technologies, that is symbol PLTR. I did record this video on Thursday, February 27th, 2025.
Let's jump to the basic fundamentals, courtesy of Yahoo Finance. Large cap corporation, certainly at 210 billion. Average daily trading volume is a very high 93 million shares a day, um, uh, for just about any stock. And so, uh, and this has been a very active stock the last few months, and this is an average daily over the last three months. So, uh, I'm going to be using the weekly bar chart, same bar chart throughout. You can see the big selloff here. We do now. There's two ways to look at this stock, and we're going to show you a support area that is sort of the support area. I think you can buy in anticipation of possible new highs in the coming 3 to 5 weeks, the next couple of months. But we also put out a key reversal high two weeks ago. In other words, we put out a new all-time high in close below the previous week's low. That is a bearish engulfing pattern in candlestick speak. It, it, what are the odds then of longer-term bearish continuation? You know, it's not extremely high. In fact, fact, I like to use line studies for my sell signals. And so while I recognize the key reversal high as a development, it really is for me this rising one-third Speed Line. I can explain now channel structures; you can kind of throw them out the window here given the accelerated vertical move we've had. They're just so steep that they lose their, their reliability. And so with respect to speed lines, I'm basically, al, taking that, that is the all-time low for Palantir from December of '22 of 5.92. So that's a good point to use, and I'm using the high of 125.41. Those are the two extremes. And if you go 33% of the way back from those two extremes, that takes you to the 1/3 Speed Line. The exact number for the 1/3 Speed Line, I'm not exactly sure. That that was last week. In order to construct the Speed Line, you draw a trend line from the low that intersects with the 1/3 pullback in the time frame in which the high was made, in fact two weeks ago and this week. That Speed Line rises to 86.33. So it's based on the 1/3 pullback. The rule of thumb with 1/3 speed lines is that if you're still above the rising 1/3 Speed Line, the bull trend actually remains intact. So this is an area we've already bottomed out at this week. 86.33 is your pullback support, rising 71 cents a week. So you know next week this will be at what, 88.04, if I do my numbers correctly in my head. I'll let you do the math, but holding above the 86.33 rising 1/3 Speed Line does maintain a longer-term bullish market, believe it or not, despite what we've seen over the last two weeks, which has been a, a reversal literally. So you know, I am comfortable buying at 86.33, and if we were to close the week below 84.79, forget about it. I think you should bail out on a long position, and I would, under that circumstance, closing below 84.79, the rising 2/3 Speed Line becomes your objective, and that is the, that is the speed line analysis in a nutshell. You're bullish above the rising one-third Speed Line, and if you close below the one-third speed line, then you've got trend reversal, or at least a neutralizing of bullish momentum, and the market then free to fall and likely would, I think, under this scenario, all the way back into what is now 46.19 to 51.57. 51.57 is a 5/8 downside Fibonacci classic retracement level, um, and also a 46.19 is rising 35 cents a week and will, over the next several months, converge anyway with that 51.57, 58. So if we close below the 86.33 Speed Line, normally I would throw in a 1% margin, but I think the 1% margin is actually above 84.79, and I think it really is 84.79 that if settle below that is the December 24th high, then uh, we have a clear sell signal. If you buy at 86.33 and I think that is a play you can make, just have your stop loss below 84.79. Um, you need to put it somewhere in that vicinity, but in terms of a week by week, uh, uh, s a closing the week Friday, February 28th below 84.79 is your indication to get out. You know, even if we close below 86.33 on Friday, I'm not comfortable holding a long position, so I'll just say that. But in terms of just sort of buy it, set your stop loss and let it ride out, I think if you want to buy the 86 handle, 87 handle somewhere in that area and place your stop loss below $84.79, I think that's in play. If we close below 84.79, continued deterioration could be rapid, uh, actually could be within a month or two that we fall all the way back into that 46.19 to 51.57 area. Until then, we may have actually formed a low through the month of March. As we look at this rising 1/3 Speed Line at 86.33, we have, you know, so some of you like are your comfortable buying weakness and obviously buying weakness is bottom picking at 86.33. But if you're waiting for a sign of recovery, there are two points that you can watch: 95.80, the low of the high. If we can close back above that on a weekly basis, that neutralizes the key reversal high, which is a sell signal in one respect. And if we close next week, for instance, above 99.81, that is an outright a shift in momentum after having tested the 86.33 Speed Line. Closing above 99.01 is your go with to the upside, and at this point in time, I'd be comfortable anticipating a return to the 125.41 February high. That in itself is, is a better than 20% move to the upside if you're bottom picking 86, 87 handle support, and you can ride that all the way up to 125, better yet, uh, but, um, once again, closing below 86.33 at the end of this week, I'm not crazy holding a long position. Your stop loss could be below 84.79. Until then, uh, we can rally back to those highs at 125.41 and then some over the next month, two or three. If we can close over the next week or two back above 99.01, uh, we should see 125.41 within about 3 to 5 weeks or less. With present volatility, it could be even quicker, within two or three weeks, but a volatility, if we close below 86.33, I think it's going to stay high. I think the, there will be a continued falling, um, into the 46.19 to 51.57 region within a month or two, I think is likely. Uh, but until then, having tested meaningful support at 86.33, uh, we can begin to quiet down here. We probably already have on the daily chart. Um, 99.01 is your upward pivot point. Comfortable buying a settlement above 99.01, anticipating 125.41. If you're an aggressive Palantir trader, and there's a lot of them out there, you can bottom pick 86.33, uh, and you could that sell the mid to upper 90s if that's kind of a 3 to 5 day, one to two week play that you like to make. Closing above 99.01, no good reason to be short Palantir; you want to be long up to 125.41. I think you want to be long anyway above 86.33; it's just that momentum should reverse decisively to the upside with a settlement above 99.01. I think that pretty much covers it. I'm going to leave it at that for this particular weekend stocks video analysis on Palantir Technologies. You have a great day.