I'm Not Missing Another Opportunity to Add to Palantir and SoFi

Yes, I may have missed the absolute lows in SoFi  (SOFI)  and Palantir  (PLTR)  on Friday. But I think, even if purchased on momentum, that these shares can be bought Monday as long as the purchase is made at a decent enough discount to recent highs. 

To be fair to myself, I did make a purchase on Friday in Palantir. I completely swung and missed with SoFi, though, trying to get a little too cute. I intend to add to both names Monday.

Last week, in writing, I gave readers the 50-day simple moving average (SMA) as an add level for both stocks. I executed well on Palantir. 

As for SoFi, that was just a failure to implement my own plan. See, even old pros sometimes outsmart themselves. That said, in the great tradition of my favorite pinch hitter of all-time, Rusty Staub, that last at-bat is over. 

Now, it's all about the next at bat...

Palantir Technologies

​Readers will see that our ascending triangle worked to perfection and then suddenly didn't work. However, overlaying a Raff Regression model over the chart, we see that not only on Thursday and Friday did PLTR survive a severe test of its 50-day SMA from above, but that line ran concurrently with the lower trendline of the model. Of course there would be algorithmic support at that level. That was not really that difficult to read.

For Monday morning's rally to really take root, the daily moving average convergence divergence (MACD) has to regain its mojo. That 9-day exponential moving average (EMA) has to get itself back above zero and the 12-day EMA needs to cross back over the 26-day EMA. You get that and we're not just eating pumpkin pie in two weeks; we're splurging for canned whip cream too. Rock on.

Price Target: $226

Pivot: $188 

Add: Down to the 50-day SMA (currently $178)

Panic: Loss of the 200-day SMA (currently $135)

SoFi Technologies ​

Similar story here. The stock survived a two-day assault on its 50-day SMA. The difference here is that we already had a cup with handle pattern in place, which is bullish. ​

The depth of said handle has been extended, which could have led to a breakdown had the 50-day line not held. Now, in theory, as with a slingshot, this could improve velocity when and if the stock approaches its pivot point. Here too, we have a daily MACD primed for improvement.

Price Target: $40 

Pivot: $32

Add: At the 50-day SMA (currently $27.60)

Panic: Loss of the 200-day SMA (currently $19)

Side Notes

Well known "Stocks Under $10" names reporting this week include Rocket Lab  (RKLB)  Monday evening and Lithium Americas  (LAC)  reporting either Tuesday morning or Friday morning. I have two sources saying two different things. I haven't seen a press release confirming the date. Most listed companies do inform investors of the date ahead of time. Am I concerned? I'm paying attention.

At the time of publication, Guilfoyle was long PLTR, SOFI, RKLB and LAC equity.