by Chad Shoop
Chad is a Chartered Market Technician (CMT) who specializes in stock and options trading. For over 12 years, he’s led some of the largest trading research firms on the planet.
Certain stocks in the market have been on fire lately.
That causes some hesitation on when to jump in, worried the dip or correction is coming right up.
Well, after the surge, we are finally seeing some weakness.
Let’s use that weakness as a buying opportunity in these high-flying stocks.
Today, we are going to dive into on that could be your golden ticket in 2025 – Palantir Technologies Inc. (PLTR).
This stock has been riding a wave that’s turned it into one of the top holdings over the early part of 2025.
But even the strongest stocks need a breather, and PLTR is taking one right now.
If you’ve been watching from the sidelines, waiting for that perfect entry point, this might just be it.
A Healthy Dip or the Start of a Slide?
Take a look at the chart.
PLTR recently spiked to new highs but has since pulled back, shedding about 30% on its latest close.
But here’s the thing.
The stock is heading right towards a previous support range, from the prior gap. This level, around $80 per share, is a key support zone to keep an eye on.
PLTR has also been respecting this rising trendline in green connecting the lows, climbing steadily since mid-2023.
In bull markets, pullbacks in strong stocks are like sales at your favorite store — you want to grab quality names at a discount. PLTR, with its growing role in AI, government contracts, and big data analytics, is a poster child for this kind of opportunity.
The 200-day simple moving average (SMA) sits comfortably below current prices, indicating we are nowhere near a trend change for this stock.
Plus, the broader market is showing signs that this recent rally isn’t a fluke. AI, data, and defense sectors are leading the charge, and PLTR is right in the thick of it.
Key Levels to Watch on PLTR
- Support Zone: $83 — This is the close prior to the gap in February and will act as a major support zone.
- Resistance: Previous peak around $120 — That recent high will be the next hurdle, but if PLTR clears it with volume, we could be off to the races again.
- Long-Term Trendline: Still intact and climbing. Bullish as long as it holds.
The Bigger Picture: More Opportunities Are Coming
PLTR is one of the first major rally stocks to offer a tempting pullback, but it won’t be the last.
This is the nature of strong bull markets. Leaders surge, cool off, and then rip higher, dragging the market with them.
Think of PLTR as the first domino. Stocks that have been on fire are starting to retrace, offering second chances to get in before the next wave higher. Keeping an eye on these leaders, and knowing when to pounce, can make all the difference.
So if you’re hunting for top-tier stocks to buy on a pullback, PLTR should be near the top of your list.
Keep your charts open, your watchlist ready, and your finger on the trigger.
The market’s next big opportunity is just around the corner.
Join Market Traders Institute today and stay ahead of the next big move!
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