Palantir's Reversal Candle
$PLTR
The music slowed down for PLTR 0.00%↑ yesterday, with the stock selling off on a news report regarding CEO Alex Karp’s $1.2Bn stock sale plan. This day was coming and should surprise no one.
https://www.tradingview.com/x/KffYF8x2/
Yesterday’s reversal candle likely puts this insane run on hold at the minimum. The chart above shows numerous unfilled downside gaps. The notable one is the most recent range from $85-$100 after the company’s last earnings report. That seems like a good starting point for setting downside expectations.
The relative chart shows PLTR 0.00%↑ has been on a near 2 year run of outperformance versus the S&P500. Perhaps this relationship retests prior breakout levels on a PLTR 0.00%↑ pullback. That’s enough for some to celebrate the win this has been and find the next idea. It’s something I’m contemplating; at the minimum, this move is allowing me to right size the position. There isn’t a wrong answer for how to trade it; it’s up to the individual investor to make it their own within the confines of their portfolio. The charts merely provide mile markers of the possibilities.
