Step-by-Step Technical Analysis for Palantir Technologies Inc. (PLTR)

1. Trend Analysis

• Recent Momentum: The stock has surged from ~$123 to $131.78 in a single day, with a massive spike in volume on 2025-05-30 (182 million shares, significantly above daily averages).
• Medium-Term Trend: From March through late May, PLTR has experienced strong, swinging moves. After the pullback between 5/15–5/23, there was a period of accumulation (sideways action, $120–$127), followed by Friday's breakout.
• Price Structure: Looking over the past 4 months: a low base in April ($74 area), a persistent uptrend with periodic volatile retracements and a break to new highs.

2. Candlestick Patterns

• May 30th Candle: Extremely bullish, opening at $123.53 and closing at $131.78—not only a gap-up from the previous close but a full-bodied candle, with the high and close at the upper end of the range. This is a marubozu-like bullish candle.
• Yesterday's Candles: Choppy, range-bound before today’s blast-off, suggesting a period of consolidation before this breakout.

3. Support & Resistance

• Immediate Support: $127.87 (hourly low during today's run), $126.3, and $123.5 (sharp pivots in today's volume-weighted trading).
• Major Support: $122–$125 (last week’s resistance, now flipped to support).
• Resistance: The next logical resistance is psychological—$135 and $140 (no historical overhead supply in this region; price is at all-time highs).

4. Volume Analysis

• Extraordinary Volume: 5/30’s 182 million volume dwarfs previous sessions, especially during breakout hours. The strongest buying was between 13:30–14:30 (over 32 million shares; $123.50→$130.44), signaling strong institutional participation.
• VWAP-led Rebounds: Each intraday dip (post-initial surge) was supported by heavy volume, especially at $127 and $129.

5. Volatility Indicators

• ATR: Given move from $123.5 to $131.78 in one day (~6.7%), recent high volatility likely means an ATR (14) in the $5–$6 range.
• Bollinger Bands: The daily close sits well above the upper band, indicating overbought conditions in the very near term, but also suggesting a potential for a volatility expansion continuation.

6. Moving Averages

• 50-Day MA: The stock is well above its 50-day MA (~$108), confirming strong uptrend.
• 20-Day EMA: Probably in $122–$125 region; Friday’s close put significant distance above short-term averages—a sign of a strong breakout phase.

7. Relative Strength Index (RSI)

• End-of-day spike will push RSI well above 70, likely in the 80–90 range: classic overbought signal, but in hyper-momentum names this can persist before reversal. RSI overbought in breakout conditions often precedes further extension before mean reversion.

8. MACD

• Clear bullish cross given price momentum; MACD bars should be extending positive.

9. Price Action and Order Flow

• Order Book Analysis: Intraday price refused to sustain any dip below $128 after breakout, with clear waves of buy programs entering at every retracement.
• No significant supply shown in tape until the final hourly candle, which was a consolidation, not a reversal.

10. Fibs & Target Projection

• Fib Extensions: Projecting from 5/13 low ($119.3) to today's high ($131.94), 1.618 Fib target is ~$136, suggesting further upside before major resistance.
• Measured Move: Breakout zone of $124 → $131 is $7; measuring from today's close gives us ~$139 as a short-term measured move target.

11. Market Sentiment and News Catalyst

• Given the parabolic move and volume, check for news: likely a major announcement (earnings, partnership, government contract, or product release). Retail and institutional FOMO flows are both possible. This could support continued upside, but also introduces risk of a reversal if move was speculative or against fundamentals.

12. Patterns

• Cup-and-Handle: The recent price action resembles a cup-and-handle breakout, with $123–$127 forming the handle and this session being the breakout leg.

13. Statistical Odds

• Breakout volume of this magnitude on ATHs, especially if coupled with a fundamental catalyst, statistically tends to lead to follow-through in the next session 70%+ of the time. Still, odds of an intraday profit-taking pullback are high given the over-extension.

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Conclusion & Trading Plan

Primary Direction: Strongly BULLISH. The breakout, immense volume and market structure all support a continued upside move. However, risk is high, and a pullback or retest after such an outsized move is common.

Entry Recommendation:

• Ideal Buy Zone: Wait for a minor pullback to the $130–$131 area (where post-breakout buyers accumulated and the last hourly high/close sits). Aggressively chasing into Monday open could mean buying into a gap-up and possible shakeout; thus, a pullback toward $130 should be used to enter.
• Stop Consideration: Tight stop below support at $127.50, with wider stop at $125 (aggressive/protective respectively).
• Profit Target: Initial upside target is $138 ($7 breakout extension measure), with stretch targets to $140.

Risk/Reward:

• Entering at $131, with a target of $138–$140 and stop at $127.5 yields 2:1 or better RR. If a sharp pre-market move pushes price higher, wait for basing above $131 before entering.

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Final Call: Buy PLTR on a minor dip or consolidation in the $130–$131 range, targeting $138–$140 in the next 24 hours as follow-through momentum and FOMO push price higher. Place a stop below $127.5, as a break below this would nullify the breakout signal and risk a fast reversal.