Market Overview for December 19, 2024
Today’s market showed consolidation across major indices, with limited directional movement and investor caution following recent Federal Reserve policy updates. The S&P 500 and Nasdaq Composite experienced marginal declines, while the Dow Jones Industrial Average remained flat. Treasury yields exhibited mixed movements, reflecting a blend of economic resilience and sector-specific challenges.
Key highlights:
* Sector Movers: Darden Restaurants surged nearly 15% on strong results, while Lamb Weston and Micron Technology saw sharp declines.
* Sentiment: Caution persisted due to mixed economic data and limited clarity on 2025 rate cuts.
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Technical Analysis (TA) and GEX for PLTR
1. Key Levels (Based on Charts)
* Support:
* $72.00 (2nd Put Wall)
* $70.27 (Bearish channel support)
* $68.00 (3rd Put Wall)
* Resistance:
* $75.50 – Immediate resistance from today’s price action.
* $77.61 – Key GEX level.
* $80.00 – Highest positive NET GEX.
2. Price Action Insights
* PLTR’s price action suggests consolidation within a bearish descending channel on the hourly chart.
* Recent rejection near $75.50 indicates sellers defending this level.
* Intraday low volume suggests weaker momentum, aligning with a sideways trend.
3. Indicators Analysis
* 9 EMA and 21 EMA:
* Both EMAs are flattening, indicating a lack of strong momentum.
* MACD:
* Nearing a bearish crossover on lower timeframes, signaling potential downside pressure.
* Options Oscillator:
* Call activity dominates, with 83.9% calls indicating bullish sentiment, though it remains unconfirmed by price action.
4. GEX Analysis
* Key Gamma Levels:
* $75: 73% (2nd Call Wall) – Acts as a pivot level for tomorrow.
* $77: 52.26% (3rd Call Wall) – Bullish breakout above this level signals momentum.
* $72: 13.55% (-Put Wall) – First downside support.
* $70: Critical put support for bearish scenarios.
Trading Outlook for Tomorrow
Bullish Scenario:
* A break above $75.50 with strong volume can lead to $77.61 (GEX resistance) and potentially $80.
Bearish Scenario:
* Failure to hold $74 could result in a decline to $72 (Put Wall), with further downside to $70 in a bearish continuation.
Neutral/Range-Bound Scenario:
* Consolidation between $74 and $75.50, consistent with today’s activity, remains likely if volume stays muted.
Actionable Suggestions
* Entry:
* Bullish: Above $75.50 with targets at $77 and $80.
* Bearish: Below $74 with targets at $72 and $70.
* Stop-Loss:
* Long: Below $74.
* Short: Above $75.50.
* Scalping Opportunity:
* Monitor breakouts from the $74–$75.50 range for quick trades.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk appropriately before trading.