Bullish Candlestick Pattern and the Decision to Buy PLTR

At $76.12, the decision to buy PLTR was based on a classic bullish candlestick pattern forming near the 20-day moving average (MA), a key support level. The pattern begins with a red candle, signaling selling pressure. This was followed by a doji candle, where the opening and closing prices were nearly the same, reflecting market indecision. This doji is significant because it often signals a potential reversal, especially when appearing near a support level like the 20-day MA.

The confirmation came with a large green candle breaking above the previous two candles, indicating strong bullish momentum and a reversal of the short-term downtrend. This pattern is commonly referred to as a “Morning Star”, a reliable reversal signal in technical analysis.

The fact that the green candle closed above the 20-day MA further reinforced the bullish sentiment. Moving averages often act as dynamic support or resistance levels, and a breakout above this key level suggests renewed buying interest. This alignment of a bullish candlestick pattern and a breakout above the 20-day MA provided a high-probability setup to initiate a position.

Volume also played a crucial role. The increased volume accompanying the green candle confirmed strong buyer participation, further validating the breakout. This combination of candlestick analysis, moving average confirmation, and volume support made $76.12 an attractive entry point.

By buying at this level, the expectation is that the bullish momentum will continue, with the stock likely to test higher resistance levels in the short term. The alignment of these technical factors made the trade both logical and well-supported.