The Nasdaq Composite Index has already cleared July highs and the 50-day simple moving average on the daily chart. That’s a high-conviction buy signal. Meanwhile, Palantir Technologies Inc. (PLTR) just exploded out of a “Weekly Squeeze” trading setup, writes Danielle Shay, editor of Five Star Trader.
Palantir stock spent months consolidating in a tight weekly squeeze that began in April. The pressure built on the pullback, and all it needed was a catalyst. Pre-earnings excitement wasn’t enough, just like we saw with Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). But the earnings print itself was the spark.
Palantir Technologies Inc. (PLTR)
The move was more than 2X the expected options-market move, a classic post-earnings momentum setup that can run for a week or longer.
On the breakout above $150, PLTR cleared the 200-day SMA—my primary buy zone. Secondary resistance sits at $165. Once that level gives way (and it’s nearly there), the path opens toward the prior high at $207.52 and then $250.
How I’m playing it: I’m buying more shares here. The long-term technical structure supports it. For options traders, selling put credit spreads or buying longer-dated calls both work cleanly with this setup. The combination of the multi-month squeeze release and the oversized earnings reaction makes this one of the cleanest risk/reward opportunities on the board right now.
