Palantir to plunge 40% ??

In seven days from now Palantir will publish their not so hot earnings report.

How can I know this?

The chart.

On the above 6 day chart price action has rallied a massive 600% in 24 months. A number of reasons now exist to be short. They include:

1) Support and resistance. Both price action and RSI are at resistance.

2) Price action support has failed. See daily chart below.

3) The Bollinger Band (red arrows). Explosive moves in price action eventually reach exhaustion. This is first indicated by the Bollinger band as the mouth curls inwards. This is a strong indication of a trend reversal.

4) The 40% correction is derived from past resistance, which has never confirmed as support. It is also a significant Fibonacci level.

Is it possible price action breaks resistance and continues to climb? Sure.
Is it probable? No

Ww

Trend breakout on daily

交易進行

domp et

註釋

Earnings day has arrived.
Looking for a move to 43-45 area.
After that, black run without fun, all ice.

註釋

Earning spike a little higher than expected. Use it for exit liquidity, don't let the euphoria take over.

註釋

hopefully the wiser among you cashed in...

註釋

Price action well above resistance now. Both on the horizontal and diagonal.

The overall idea stands despite the $20 price increase.
This stock is heavily overbought.