Palantir Technologies (PLTR): Great Long-Term Buy, Price Entry

Palantir Technologies (PLTR): Excellent Long-Term Buy With Key Entry Level

I would like to begin by saying that I have been bullish on all Artificial Intelligence (AI) related financial instruments. I believe that we are in the early stages of an AI revolution, and that AI assets could provide a great ROI over the next few years.

My initial PLTR chart analysis was brief (due to the high volume of chart requests), and I missed some key aspects of the chart that caused me to initially predict a price movement to the downside.

This is a more comprehensive analysis for PLTR to explain the key signs that I see on the chart.

(1) Why did I predict PLTR would move to the downside in the coming weeks?

PLTR (1-Week Candles):

There were too many bearish signs on the chart:

PLTR appeared to be forming a double top pattern, which is bearish.
Using the Ichimoku indicator, there is a red cloud of resistance that has acted as resistance twice, which has pushed the price down for approximately 3 weeks each time (shown in the white circle for the most recent touch).

The PLTR price was near the top of the Bollinger Band, which is usually a great area to sell.

The EMA ribbon was acting as an area of resistance, and the second peak formed a lower high, which is bearish.

The RSI formed two peaks in the 50 level (shown in the two red circles), which is bearish.

All of these bearish signs caused me to predict that PLTR would drop downward with a price target on the bottom of the Bollinger Band (approximately $6.14).


(2) What has changed since my last analysis?

As I'm transferring my chart analysis from Discord to this site, I've observed some key signs that I've missed in my previous analysis. This is a more comprehensive analysis on PLTR to make a better informed prediction.

PLTR Chart Analysis (1-Week Candles):

Using the Ichimoku tool, there have been two recent short-term touches along the red cloud of resistance (shown by the two hammers on the chart). This red continued to act as an area of resistance, and the PLTR price dropped significantly for a few weeks after touching the red cloud.

On the Bollinger Band, the PLTR price has broken above the upper band twice (including the current weekly candle), as shown by the two yellow circles. Usually breaks above the Bollinger Band are great areas to sell.

Along the RSI, there is actually a bullish upward trend (shown by the orange line on the RSI) with several peaks forming in the 40 and 50 levels (shown in the orange circles). These peaks are forming higher highs with each peak having a higher RSI value. This is a sign of bullish strength building up for PLTR.

Another key aspect of this PLTR chart are the two white trendlines. The upper white trendline is a key resistance line that has keep pushing the PLTR price downward. In comparison, the lower white trendline is a key support line that has acted as support for PLTR to push the price upward.

In the white circle, there was 3-weeks of indecision for PLTR's price action with a rejection at the upper resistance line that led to downward price movement. This move down resulted in a break below the PLTR support line, which could either be bearish or a great buy opportunity.

I would have inaccurately predicted that this break is bearish because it appeared that the RSI was moving toward the orange trendline (shown at the red circle). However, instead there was news that PLTR earnings exceeded expectations. This led to a deviation from the trend and a sudden move to the upside.

In my opinion, this move is short-lived and there will be another pullback down to the orange trendline. My trading approach would be to patiently wait for the RSI to touch this orange trendline for a long entry (shown in the green circle).

(3) What is PLTR's long-term outlook?

PLTR Chart Analysis (1-Month Candles):

There are some bullish signs for PLTR for the upcoming months:

On the monthly chart, the RSI formed a bullish bounce at a RSI level of 45. This is bullish, and indicates a continued move to the upside.

The month of May appears to be forming a bullish engulfing pattern (shown in the orange circle), which could lead to bullish price action for the next 1-2 months. However, it is important to patiently wait for this monthly candle to close on May 31.

These signs lead me to believe that PLTR could be bullish in the coming months. However, the current price is too high for a good entry. My approach would be to patiently wait until PLTR's RSI drops back down to the orange trendline to look for a better long-term buy entry there. I personally am looking at PLTR as a long-term investment, and I would be continuing to DCA along the orange trendline and below RSI levels of 30 on the 1-week candle chart.