Bullish Flag Sets the Bigger Picture
The long-term trend structure as seen in the weekly chart shows the potential formation of a large bullish flag. If last month’s low marks the bottom of the correction, an eventual upside breakout of the parallel channel forming the flag would signal a continuation of the larger bullish trend. The 200-day moving average remains a key dynamic resistance indicator because it was confirmed several times as resistance following the break below it in late January.
Beyond that, the lower swing high that defines the bearish trend structure is a key upside target, as a rally above that level would signal that the declining channel has likely been reversed. That price zone carries additional weight because it aligns closely with a 61.8% Fibonacci retracement of the bearish correction.
Support Levels Hold the Key
In the short-term, PLTR is extended. However, if the recent low ultimately proves to be the lasting bottom of the correction, pullbacks should be watched closely for signs that they are completing and for renewed evidence of buying strength. The 50-day moving average at $134.09 is one area to watch for support, followed by the 20-day moving average near $125.60.
In addition, the former high from February 2025 at $125.41 marks another potential support zone, aligning closely with this week’s low of $126.64. How PLTR behaves around these support levels could provide the next clue as to whether the developing bullish reversal has enough momentum to continue toward resistance targets.
Source: Original Article
