With NVDA earnings looming, AI and chipmakers are feeling some big headwind. PLTR has been coiling up in a consolidation and is starting to show signs of which way it will spring. It has been completely range locked for the last two weeks but some key indicators are showing what looks to be a very high probability move.
The chart shows it clearly in a fight between buyers and sellers but one side looks to be getting tired. Here’s the chart:
The RSI has curled down as has the MACD. What really shows a likelihood of a drop is that the curl downward on the MACD is from such a highly elevated point. the Sept 18 165 puts are at about $4.85 right now. If NVDA has earnings that disappoint Wall Street in any way, PLTR is likely to release to the downside and it could be big.
This is a trade I would look to exit by the end of the week, right after the big earnings.
Keep learning and trade wisely.
John Boyer
Editor
Market Wealth Daily
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