$PLTR - Two possible pathsHere is a bullish and bearish count for PLTR. Please note that at this time, my bias is towards the bullish count.
The main question is whether we have hit the cycle 2 bottom at 17.06 or not. If that May 11 low was the bottom, then we are within primary wave 3 of cycle 3. This would be the most bullish place where we can expect the biggest gains.
If that $17.06 on may 11 was not the low but just wave A of a very large 5-3-5 zigzag, that makes the June 28 $27.50 high the wave B top, and we are gonna continue down for wave C around $10 near IPO prices.
$17 is the key level to watch. Below 17, we would invalidate the bullish thesis by having a close under the wave W close. However this would also mean that cycle wave 2 would retrace more then 78.6% of cycle wave 1 which seems excessive at this stage. This is why i am leaning bullish at these levels (the daily RSI is also at oversold levels). Under $18 i'd get weary and under $17 i would cut my losses and wait to see how price plays out.
The best strategy here in my opinion is leaps for $35 and $40 strikes as IV is low right now and you could buy lots of time for fairly cheap premium.
You could also buy $24-$26 OTM calls with a tighter stop at around $18 about 4-6 weeks out once we hit $20 in the next few days.
Hope this plays out and pays out! Let me know what you guys think.
Lowiv
SRE - A Hidden Gem?Whether you're a short term trader or a buy-and-hodler, there could be a good swing play in this stock if it can hold the $134 support level . SRE has broken above the top of the recent range of the last year and is making strong support at these levels in form of a flag. Volume as also been increasing despite any major price changes.
To take this trade, we'll look for a decent close above the purple trendlines . This stock is low IV, so I might enter early since risk is low, especially with a tight stop loss at $134.
Just be careful, this could definitely break to the downside like anything else, but the odds look good for the bullish case. Wait for direction, manage your risk, and you'll be gold .
If you're buying call options, buy lots of time. At least August.
Good luck!
