Palantir - looks like a set-up for another leg higher on the weekly

Taking a look at Palantir ahead of its earnings on Monday, currently its stock is trading at around $23.00 a share. From a technical standpoint, we can see that on the weekly chart, the share price continues to form higher lows followed by higher highs. The most recent high was formed at $27.48 with what now seems like a potential new higher low at $20.33. In theory, this looks like a setup for another leg higher toward the $30 mark. However, with the earnings coming, set-ups like these can be meaningless. But still, this creates optimism amongst the bulls and should see an increase in buying in Friday’s session. A break below the support of $20.33 (higher low) could lead to a test of this trendline support of $19.19. A break below the trendline may lead to a further sell-off towards $15.61. Towards the upside, Palantir would most likely need to remain above $21.50 for some stability and momentum build up before a push higher, this could be boosted by the earnings. The slight concern here heading into the earnings is the MACD, the MACD line has once again crossed below its signal line. We can see from the past when it has done that it has either moved sideways or retraced back. But as it is a lagging indicator, the recovery can be missed and may only turn back to positive once a new high has already been formed. Though the RSI is still positive as it reads 57.