Navigating the Resistance Zone
Because resistance is anticipated near the $161.78 to $162.40 price zone, the initial test may lead to a minor pullback. However, the first pullback following a significant breakout frequently produces attractive risk/reward conditions, as potential upside is extended, and the downside is structurally limited. Completion of that pullback should establish asymmetric entry opportunities in anticipation of a sustained recovery above $162.40. Clearing that barrier would further confirm a longer-term bullish reversal process.
Defining Key Downside Risk
This week’s bullish reversal signs in PLTR, if sustained by continued momentum, suggest the potential for the long-term bull trend to eventually resume and extend above the 2025 peak of $207.52. This means that the next pullback low may prove to be the lowest entry price for the stock in some time.
Currently, key downside is indicated near the recently reclaimed 100-day moving average and Friday’s higher daily low of $145.79. This zone is further validated by the neckline of the macro head-and-shoulders top reversal pattern that triggered in early February. Should this floor fail to hold, the 50-day moving average near $141.78 becomes the next potential downside target, marking the final line of defense to preserve this fledgling structural reclaim.
