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The Dollar Will Crash
from December 2022
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BREAKOUT A CANDLESTICK ANALYST SHEDS LIGHT ON THE MARKETS
The Future Price of Predictive Policing
By Stephen W. Bigalow
P
alantir Technologies (PLTR) has been a much-debated battleground stock ever since its initial public offering a little more than two years ago. The company offers software that predicts the probability of crime, terrorism and other events.
This chart shows a recent fry pan bottom pattern, a slow-rounding pattern that points to a buildup of bullish sentiment. The expected result is a strong price move to the upside.
The J-hook pattern that accompanies it is a prerequisite of a strong price move, then an indecisive pullback, followed by a new bullish wave. A bobble breakout is a more definitive J-hook pattern.
The first price move fails at an obvious resistance level, such as a moving average. It pulls back, usually using the T-line as a support, and then comes back up through the resistance level.
The bobble breakout pattern produces better bullish probabilities because everybody watches to see whether it will breach the resistance level.
Active investors might consider buying Palantir when it comes up through or closes above the 50-day moving average at approximately the $8.40 level. Once the stock closes above the 50-day moving average, a long position should be closed if it subsequently declines and closes below the 50-day moving average.
Palantir Technologies
(PLTR/NYSE) Technology: Enterprise Software Market Cap: $16.8 B Employees: 2,920
PTLR BUY Above $8.30 SELL At or below $8.05
Beta vs. S&P 500: 1.60 1-year total return: -69.10% Analysts’ Target (Avg.): $10.60
Palantir Technologies is exhibiting a classic pattern: the “fry pan bottom.” ———— A “J-hook” indicates a common price movement that foreshadows high-probability outcomes. 50 SMA Bobble Breakout Entry T-Line In a J-hook pattern, Wave 3 has the same magnitude as Wave 1. Fry Pan Bottom The fry pan bottom is a slow, rounding bottom that’s difficult to trade because of its indecisiveness. But its trajectory points to a buildup of bullish investor sentiment, producing a strong price move upon a breakout. Sep Oct 08 15 22 29 0601 12 19 26 03 10 17 24
J-hook pattern
$8.40
2022
Stephen W. Bigalow, a veteran of 45 years of trading, directs a candlestick analysis learning forum at candlestickforum.com.