This is a heavy retail stonk and I've seen a lot of tratooors calling top because Alex Crap was calling shorts coke heads on CNBC. Now we have a classic head and shoulders. Could it be a trap? IDK but it regained the 50 ma today which could act as a launch pad. Worth a long above the neckline and 50 MA to 24 ish. Then a call trigger on ATRs may justify more. I view this a contra to an obvious distribution pattern. A tight stop at 21.90 is a must!
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The morning pop rejected off the call trigger. I sold after that for a nice little gain and good thing I did! The afternoon sell closed below the 50 Ma ending the long entirely. Might be a good short afterall. Might go bera under 21.8
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Short! invalid with a close above 22.8
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Starting very small because its still above the YTD vwap. It bounced viscously off it last week
The head and shoulders pattern is one of the most reliable patterns that a trend is reversing. You'd have to have a really good reason not to trust it.
@jkish19871, the failure at 23.8 showed a clear rejection of the 48 period moving average in the 4 hour timeframe. For a swing long I would need to see the 4hr 48 period ma break and hold. Currently this line is downward sloping and at 23.58. PLTR is also under the 48 daily ma. The setup is looking increasingly bearish imho but there is a possibility this consolidation breaks to the upside as well because the neckline is holding support. The next few days should be very telling. If it gaps significantly up or down and I miss the trade so be it. There are always more setups out there.