Here is a bullish and bearish count for PLTR. Please note that at this time, my bias is towards the bullish count.
The main question is whether we have hit the cycle 2 bottom at 17.06 or not. If that May 11 low was the bottom, then we are within primary wave 3 of cycle 3. This would be the most bullish place where we can expect the biggest gains.
If that $17.06 on may 11 was not the low but just wave A of a very large 5-3-5 zigzag, that makes the June 28 $27.50 high the wave B top, and we are gonna continue down for wave C around $10 near IPO prices.
$17 is the key level to watch. Below 17, we would invalidate the bullish thesis by having a close under the wave W close. However this would also mean that cycle wave 2 would retrace more then 78.6% of cycle wave 1 which seems excessive at this stage. This is why i am leaning bullish at these levels (the daily RSI is also at oversold levels). Under $18 i'd get weary and under $17 i would cut my losses and wait to see how price plays out.
The best strategy here in my opinion is leaps for $35 and $40 strikes as IV is low right now and you could buy lots of time for fairly cheap premium.
You could also buy $24-$26 OTM calls with a tighter stop at around $18 about 4-6 weeks out once we hit $20 in the next few days.
Hope this plays out and pays out! Let me know what you guys think.
The main question is whether we have hit the cycle 2 bottom at 17.06 or not. If that May 11 low was the bottom, then we are within primary wave 3 of cycle 3. This would be the most bullish place where we can expect the biggest gains.
If that $17.06 on may 11 was not the low but just wave A of a very large 5-3-5 zigzag, that makes the June 28 $27.50 high the wave B top, and we are gonna continue down for wave C around $10 near IPO prices.
$17 is the key level to watch. Below 17, we would invalidate the bullish thesis by having a close under the wave W close. However this would also mean that cycle wave 2 would retrace more then 78.6% of cycle wave 1 which seems excessive at this stage. This is why i am leaning bullish at these levels (the daily RSI is also at oversold levels). Under $18 i'd get weary and under $17 i would cut my losses and wait to see how price plays out.
The best strategy here in my opinion is leaps for $35 and $40 strikes as IV is low right now and you could buy lots of time for fairly cheap premium.
You could also buy $24-$26 OTM calls with a tighter stop at around $18 about 4-6 weeks out once we hit $20 in the next few days.
Hope this plays out and pays out! Let me know what you guys think.
