PLTR – Technical Analysis from a Professional Investor – Update 12/15

by vegaseller

So I did an update a week ago telling you why PLTR at 25 was likely the bottom. I also told you to get the hell out of the 12/11-12/18 options as those would expire worthless.

now I will go over how to trade the stock in the next couple of weeks. I am cutting down the number of words I am writing because it has come to my attention from comments in my previous posts that a lot of you guys can’t read. So I am going to keep it even more basic.

We are now approaching where TSLA and NIO were after their first initial rally, correction and consolidation before the second leg rally which then forms the symmetrical triangle.

Again, this was the same chart for Tesla for the first phase of the run-up and transition to the second run-up. The slight skew of the triangle doesn’t matter, what matters is you see a narrowing of the band before the upward movement.

We are primarily funded by readers. Please subscribe and donate to support us!

Now we look at option pricing. Option deltas are the most attractive that I have seen on PLTR for almost 1+ month now. These tell me that there are very few buyers of call options at this point and we are in a lull before periods of significant more option buying.

We are about to start the explosive second run phase of Palantir and my target still mid to low 40s by end of the year/early next year. Again, don’t be surprised if we still dip down to around 23. But the downside is largely done. This is of course assuming we don’t get a massive stock market crash for which I have small amounts of hedges on VIX calls that are rolling on a monthly basis.

TLR: go long PLTR now, risk reward is quite favorable. 23 is the lowest it can probably go in the short term. You are already seeing doubters on PLTR on WSB. This means from a psychological stand-point, most would be sellers are already gone. The market is now open widely to incremental buyers. I bought some 12/24 calls at the 30 strike and added more to my 5/21 50 strike.


Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.