PLTR Bull Trap in progress
The bull trap pattern is starting for form, trapping liquidity once again for those who decided to go in long after Palantir reported their Q1 2023 earnings. Similar to a quarter ago after Palantir stock made a high of $10.31 on Feb 16, 2023, the stock began to sell down.
As the stock gapped up from close of $7.74 after to earnings to $9.22 at the start of trade on May 9, 2023, there is some inefficiency in the price action, where the price might make an attempt to close the gap.
Current short interest is 7.22%, while forward PE is around 46 times forward earnings estimate.
If options is your thing, might look at buying put at strike $9 expiring on June 16, 2023. Alternately if you already own 100 shares of PLTR, might consider selling covered call at strike of $10, collecting premium of $60 per contract.
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My Palantir crystal ball says the stock will hover around these levels for two weeks then slowly work its way back down to $8 or less.
What is Current short interest mentioned here?
The stock has taken off too much due to $0.05 going this back below $8 in a month. Now the impatient, optimists and dreamers are buying. When they spend money the price goes down.
How long will PLTR maintain these highs ? Will the shorties and profit takers overtake the bulls and drop this stock back below $9 or $8 ?
Ultimately, its products, profitability, and comparatively low valuation bode well for Palantir stock. Initial interest in its AIP platform appears high, and its existing platforms have attracted increasing attention.
Look like $Palantir Technologies Inc.(PLTR)$ will rising again.
The high end of the 52 week range has been coming down.
I would hold on at this time. Still not a good time to buy.
Good