Technical Analysis for PLTR -Jan. 8

1. Trend Overview:
* PLTR is in a clear downtrend on the 1-hour timeframe, consistently forming lower highs and lower lows.
* The price has broken below key support levels at $74.61 and $72.23, indicating increased selling pressure.
2. Key Support and Resistance Levels:
* Immediate Resistance: $74.61 (prior support, now resistance).
* Key Support Zones:
* $70.00: Strong psychological and technical level, also aligned with the GEX highest negative NETGEX/PUT support.
* $68.00: Next major support level based on price action and put wall analysis.
3. Volume Analysis:
* The sell-off is accompanied by increasing volume, suggesting strong conviction among sellers.
* Buyers seem hesitant, with no significant reversal patterns visible in volume yet.
4. Indicator Analysis:
* MACD: Bearish momentum remains strong as the MACD line is far below the signal line, though some signs of flattening suggest potential consolidation ahead.
* Stochastic RSI: Deeply oversold, which may indicate a short-term bounce could be on the horizon.

GEX and Options Analysis:

1. Gamma Exposure (GEX):
* Negative GEX: The zone at $70.00 aligns with the highest negative NETGEX, signaling this level could serve as a temporary floor for the price.
* Call Resistance Walls:
* $77.00 and $80.00 are key call resistance levels where significant selling pressure is likely if the price attempts to rise.
2. Options Activity:
* IV Rank (IVR): 86.1, indicating high implied volatility, which makes options relatively expensive.
* GEX at 65.4% (Call-dominated), showing a slight bullish tilt in the options flow but overshadowed by strong negative pressure at lower levels.
Trade Scenarios:
Bullish Case:
* A rebound from the $70.00 support zone could lead to a test of the $74.61 resistance level.
* Entry: $70.50 after confirmation of reversal with volume support.
* Target: $74.61.
* Stop-Loss: Below $68.00.
Bearish Case:
* A break below $70.00 could lead to further downside toward $68.00 and potentially $66.00.
* Entry: Below $69.50 with strong selling momentum.
* Target: $68.00.
* Stop-Loss: Above $71.00.
Conclusion:
PLTR's current price action reflects bearish momentum. While the oversold indicators suggest the potential for a short-term bounce, the overall structure remains weak. Key levels like $70.00 and $68.00 should be closely monitored. Risk management is crucial, especially with heightened volatility in the options market.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risks before trading.