$PLTR - Cup with Handle in the Making
$Palantir Technologies Inc.(PLTR)$ - Cup with Handle in the Making
The cup and handle is a bullish chart pattern that suggests continuation of an existing uptrend. It includes:
The Cup: The price forms a "U" shape, indicating a period of consolidation or accumulation.
The Handle: The price then retraces slightly, forming a handle-like shape. The handle should be shorter than the cup and have lower trading volume.
The Breakout: A bullish breakout occurs when the price breaks above the resistance level formed by the top of the cup and handle.
Trading the Cup and Handle Pattern:
Buy Signal: A buy signal is triggered when the price breaks above the resistance level of the handle.
Stop-Loss: A stop-loss order can be placed below the support level of the handle.
Profit Target: A profit target can be set based on the height of the cup, in this case $80.
The Monthly RSI and MFI for Palantir presents overbought levels, building on the thesis that a pullback or the handle is brewing.
Not all cup and handle patterns will lead to successful trades, so it's important to manage risk.
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