The U.S. stock market continued to struggle on Friday with weakness across the most critical stocks at the transaction opening. Nevertheless, recovery started to emerge among some of the prominent stocks such as Tesla (TSLA), Palantir (PLTR), and Super Micro Computer (SMCI). Losses at the beginning of the week were followed by slightly lighter aftermarket trade but the traders still seem to be willing to buy the dip in these tech-related names so it is hard to say that the faith is lost.
Tesla had the most drama filled recovery on the horizon. Tesla was already down on opening after a gap down during the start of the session. It is the third recent week when market jitters caused by CEO Elon Musk, especially regarding his back-and-forth with former President Donald Trump, first plummeted the stock and then rallied.
The trend is that the market does not get easily stirred now by the occurrence of these cyclic incidences. Well, whenever there is a pullback, it has turned out to be a buying opportunity. High support values are keeping the stock up and thus many traders are convinced that Tesla may be about to recoup. The political drama and the stock not falling with it illustrate that the market remains optimistic about the long-term value of the company fundamentals.
On Friday, Palantir Technologies appeared to be a good idea. The traders are eyeing the level of $150, which may serve as a target and resistance level. In case the stock breaches that point, it may go to 165. The short-term pullbacks are being viewed as entry opportunities, particularly when the 50-day exponential moving average (EMA) stands approximately at the value of $128.50. Another price point at which buyers are likely to enter is at the mark of 125.
The sentiment is bullish in general. Even when Palantir is within major support lines, the future will continue to look promising. This is what makes it an enjoyable alternative to momentum traders seeking plays in the AI and defense technologies realm.
Golden Cross indicates Strength at Super Micro Computer. Super Micro Computer (SMCI) opened a little on the weak side but now trades strongly in the upper end of its range. At present the trend is not in our favor since there is no momentum; however, the free energy is taken as bullish.
A primary indicator in the technical world that has attracted attention to the market in the recent past is the recent golden cross, when the short-moving average rises over the long one. This is regarded as a powerful purchasing indication. Nevertheless, the market is uneven and traders can always wait until a visible rebound occurs before entering it.
The market price of $55 is an essential point of observation. In the case of stock, it can begin another leg higher in case it can gain the power to break above. In the meantime, patience may be required. Still, all in all, SMCI is a decent choice for buyers who seek to buy on dips instead of buying on rallies.
Today indicates that the market has started slowly, but there is still faith among investors in the best tech and growth stocks. Tesla, Palantir, and Super Micro all depict areas of support at low positions and traders are considering any dip as an opportunity to add positions. The mood is to wait on pullbacks and then buy. Every one of these stocks is technically set up the same way but they are focusing on the same aspect: growth, innovation and long-term potential are still attracting buyers. To the audience following the broad market such activity provides a bit of hope. In the choppy environment there is opportunity. So long as the support levels prevail and fundamentals are stable the way towards further ascent is clear.
