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Palantir Technologies Inc(NYSE:PLTR) has plummeted over 50% from its all-time high of $45 made back on Jan. 27.

Even when Palantirannounced on April 5it had secured a five-year, $89.9-million contract with the National Nuclear Security Administration, the stock failed to recover. The bottom may be in, however, because on Thursday Palantir’s stock made a bullish break upwards.

Some options traders agree and bet over $529,655 Palantir’s stock is headed higher.

The Palantir Chart: Palantir’s stock gapped down on Feb. 16 and began trading in a bullish falling wedge pattern. On Thursday, the stock broke out of the pattern and recaptured the eight-day exponential moving average (EMA) and on Thursday afternoon retested the top sloping line of the falling wedge. Palantir has also created a triple bottom pattern near support at the $21 mark, which is bullish.

Although Palantir’s stock is trading above the eight-day EMA, it's still trading below the 21-day EMA with the eight-day EMA trending below the 21-day EMA, which is bearish. The stock has a gap left behind at the $30 point, however, and because gaps are filled 90% of the time, it's most likely Palantir will fill the overhead gap eventually.

Bulls want Palantir’s stock to hold above the sloping line of the falling wedge and for an increase in bullish volume to push the stock up to its next resistance level at $25.21. If it can regain that level as support, it has room to fill the gap which coincides with the stock's next resistance level near $30.

Bulls want Palantir’s stock to fall back into the falling wedge and continue to trade down until it loses support at $21.04. Under the $21 area, there is no support until $17.54

The Palantir Option Trades: Below is a look at the notable option alerts, courtesy of Benzinga Pro:

• At 9:33 a.m., Thursday a trader executed a call sweep, near the ask, of 3670 Palantir options with a $23 strike price expiring on April 23. The trade represented a $150,470 bullish bet for which the trader paid 41 cents per option contract.
• At 9:53 a.m., a trader executed a call sweep, near the ask, of 289 Palantir options with a $23 strike price expiring on May 21. The trade represented a $48,552 bullish bet for which the trader paid $1.68 per option contract.
• At 10:19 a.m., a trader executed a call sweep, near the ask, of 701 Palantir options with a $22.50 strike price expiring on April 30. The trade represented a $47,668 bullish bet for which the trader paid 68 cents per option contract.
• At 10:58 a.m., a trader executed a call sweep, near the ask, of 345 Palantir options with a $22 strike price expiring on April 23. The trade represented a $53,475 bullish bet for which the trader paid $1.55 per option contract.
• At 11:06 a.m., a trader executed a call sweep, near the ask, of 1334 Palantir options with a $24 strike price expiring on April 30. The trade represented a $60,030 bullish bet for which the trader paid 45 cents per option contract.
• At 11:57 a.m., a trader executed a call sweep, near the ask, of 458 Palantir options with a $50 strike price expiring in January 2023. The trade represented a $169.460 bullish bet for which the trader paid $3.70 per option contract.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

PLTR Price Action: Shares of Palantir closed up 1% to $22.86.