Transcription
Now, everybody, I'm Cantonese Cat. Hey everybody, Cantonese Cat here to talk about Palantir. What do we have here on Danny's chart? Well, we still have an active yellow candle which is bearish. And the yellow candle has led to a downtrend. It has broken below the ribbon. It has broken below these volume shelf supports over here on the momentum bar on the daily chart. It has also broken underneath this volume shelf over here at the point of control. Things are getting a little bit overextended down to the downside. We did end up closing the daily candle underneath a momentum bar over here around 156. We end up closing below that.
Currently, we have green lights keep on getting stronger. Currently, we have a little bit more retail momentum here. Whales are really truly disappearing here over the last couple of days. These are looking pretty scary, right? Well, let's talk a little bit about it. I think we are a little bit overextended from the ribbon. I think because of how overextended we are from the ribbon, there should be a retracement to the mean coming relatively soon. We also have a hammer bottom here, which I'm going to talk a little bit more about. With that said, the momentum is still to the downside, right? I I don't think anybody's going to argue, yeah, there could be potentially some further downside here for Palantir on the daily chart on this lower time frame.
Last time when I saw whales leaving such drastically on the daily chart was back in April of this year and we all know kind of how it played out from that April scare, but it ended up going down further until it really was, you know, getting some pretty decent support and had a very strong reaction. And it just kind of went up from there. Sometimes the daily whale interest are more volatile than the higher time frames. The weekly also is looking a little bit scary too. Now you have to take that into consideration here because overall Palantir is still a relatively strong stock. Um if you look at the monthly which we won't show here the whales are still very very strong on the monthly. I think that there's a lot of high conviction whales that are staying in the stock and higher time frames are still very strong but on the daily they are, you know, really showing some weakness here and on the weekly it's also starting to kind of show some kinks in the armor here as well.
Again, this just reminds me of what happened around in April. In in April we know what happened. We end up going lower, even dropped down underneath these volume shelf supports and then we just ended up bouncing after that. The truth is, even though we end up closing, you know, under the red ribbon over here which we've done before, we are still on top of this big volume shelf support here on the weekly. So we're still finding support here. We are starting to have a little bit of green light. You would expect that after price has done nothing here for months to see a little bit of green light here. It's just been chopping sideways, right? Yellow candle, red candle, yellow candle, just been chopping sideways here for about 3 months. And same thing with the whale's momentum chopping sideways here for about 3 months here. It looks like it was we're just going to go up from there, right? Nope. Decided to cool down a little bit more together with the market. That's what we're doing right here.
So, what do we think in terms of what's happening here? Well, if you're looking at different levels, and this is basically the FIBs that I've drawn from the all-time high here around 207 all the way down to the April scare around $66. That's right. Palantir was just $66 back in April. It's it's insane to think about that. We have retraced back to the 0.618, 618 which seemed like it was a pretty strong support zone from before. We basically are trying to break above and we just have a hard time breaking through and coming back down to backtest the same horizontal zone over here with a little bit of a hammer candle. So it shows demand right here. If you also see the buy order blocks, there are a few big buy order blocks right down here around the 140s. And that could potentially serve as some pretty decent support zone over there. 0.5 sometimes would be what it takes to retrace back down to from a big move like that. Retrace halfway is not unheard of, but so far 0.618 seems to be finding some pretty decent support here.
So what are we expecting here with the Bollinger band? You can see how it was way too far, way too fast above and we simply just got pulled back down. And now Bollinger band is expanding. Here is expanding and price went to the upside way too far, way too fast. Here we're expanding and price went down way too far, way too fast. I do think that we're a little bit far away from the mean and that if we end up finding some pretty decent support here, which I think we have, then we could retrace back to the mean and see whether or not becomes more than just a retracement to the mean. It could drop down to 0.5, right? I'm not saying that it wouldn't uh it could drop down to 0.5, but so far we're finding some pretty decent support over here and got a pretty decent hammer formation here.
Now on the Gann it did drop underneath the 160 zone which is, you know, unfortunate. We did end up dropping a little bit underneath this arc over here which is a little bit unfortunate too but and we did also using a different setting also drop underneath this 160 zone over here. So 160 not so much of a strong support right there at like that particular smaller level. But if you're looking at um a couple of things too, you also see that it kind of dropped underneath the 20-week moving average here. Wherever it dropped underneath the 20-week moving average, sometimes the logical thing to do would be to touch the lower Bollinger band. Currently, lower Bollinger band is somewhere around 140. Palantir has a habit of not doing that. This is a little bit unusual stock because if it breaks down 20 technically, it really should touch a little. Palantir has been avoiding doing this for the entire bull run. Even during that April scare, it just didn't really want to do that. And it could very feasibly be the first time where it does that and it would be logical for it to do so. Maybe a little bit more downside to 140 is possible because it did break down underneath, you know, Danny's 156 level. My 160 Gann level also broke down underneath the 20-week moving average.
With that said, we're entering a buy order block over here, you know, on the weekly chart. So, there is demand down where we're at right now. I wouldn't be too scared that it has to go down that much further. Now, if you're also looking at my fib levels here too on a much much higher time frame, this is from all the way from the beginning peak over here in 2021 all the way down to 2022 the end of the year. Do a fib sequence here. These are linear fibs and you can see how prices convincingly initially broke above the 4.236, 236, which is huge. It decided that, hey, we wanted to retrace back down to 0.3.618 here to backtest and it basically found support right at that level. Finding support right at the 3.618, which should be a pretty strong support level is not a bad thing.
If you're also looking at the log fib, you have two ways to draw fibs, either linear or log. You look at the log fibs. I think that this month is really trying to fight the 1.618. We are basically flipping the 1.618 from previous resistance here into support. And this to me is a backtest of that support level. 1.618 is very, very important. You can see how during the 2015-2017 bull market here for Bitcoin which I previously drawn the comparison to how you can actually have price just end up breaking down even hugely underneath. I don't think this is necessarily going to happen with Palantir but it happened with Bitcoin and and it just kind of shaked up, just kind of went up a lot higher. It could break down the 1.618, form a big wick underneath below, and then go higher. Last month before that convincingly broken above the 1.618, right? Like we've convincingly broken above the 618 over here. But having any brutal backtest is not out of the question because these are very volatile assets. But these volatile assets that can go from 120s to 60s, that can go through 3,000 all the way down to, you know, like 100, 500, these are what is the ticket, the emissions ticket to higher prices. You need volatility to sustain price going up higher.
To summarize, Palantir is hitting support level zone right now. Not so much in the 160s, but in the 150s range, and it's currently still holding a zone of buy order blocks and fib levels. Battle zones going to be number one, 157.62, which to me I think is the most important is the 1.6.8 log fib. And the other battle zone is 147.31. It's just the 3.6.8 linear fib. Right now, I think we're fighting 157.62. Um we have held to 147.31. We are losing momentum during this cooldown. And this cooldown, you with any cooldown of a stock that has gone this much, you're going to lose some momentum. But we're at a zone where there are buy orders below and fib levels below that seem to be serving as support. 147 is support below, followed by if needed, 123 is plausible. I do think that 130 is also, you know, a decent level, but you have to understand that volatility has shaken the stock sideways for about 3 months and we're still closer to the bottom of the range. Because of Danny's momentum indicator, I have to open up to the possibility that it could go down lower. If it does, I think that they would be good buying opportunities. Although I do think that currently where price is at right now and also in the, you know, in the 14 in high 140s, there are buyers, there are buy order blocks and I do still feel strongly that these levels could still hold. If they don't hold because the higher time frame of the monthly still look bullish, then to consider if you would still buying Palantir. I'm not. I'm just holding. If you still want to buy Palantir, then look for some of the levels down below. 147 would be a good level. If you end up hitting 123, oh man, sometimes it's just like what happened back in April when when there is a liquidation cascade. It doesn't matter. Like the levels, the specific levels doesn't matter. When there's a liquidation cascade, when prices just keep dropping and dropping and dropping, sometimes you just have to make the right decision for yourself. And it may not be the best idea to get shaken up during these flash crashes. Reclaiming 157.62 to end the month of November. We go higher from here. Thanks so much for listening, guys. Have a good one.