Long
Short
Short
Long
Indicator Divergence and Convergence Reveal Professional TradersDivergence and convergence indicators can help traders identify changes in price momentum and determine which market participants may be controlling price.
For the most responsive analysis, use an exponential moving average (EMA) or another front-weighted moving average. Avoid simple moving averages, which can lag too far behind current price action.
Begin with one primary indicator and one subordinate indicator. Primary indicators analyze price, volume, or both, while subordinate indicators include moving averages, Linear Regression Lines, and other tools applied to the primary indicator. Adding more indicators does not necessarily improve the analysis and can create conflicting signals.
More advanced, semi-professional, and professional traders may also experiment with combining two primary indicators.
Your charting software should be configured for your trading style, holding period, and risk tolerance. Whenever possible, include technical indicators that lead price rather than merely lag behind it. This is where divergence and convergence analysis can be especially useful.
Divergence occurs when two indicators move away from one another. Convergence occurs when they move toward one another. Each pattern provides different information about momentum, price direction, and whether professional traders, smaller funds, or retail traders may be influencing the stock.
Learning to recognize divergence and convergence on a stock chart can help you evaluate who controls price, anticipate potential changes in momentum, and make better-informed trading decisions.
Education
Long
Long
Long
Long
Long
Long
Long
Short
MSFT: Testing the 390 Institutional ZoneMarket Structure Update
Lately, the market has been stuck in a broad range, with capital continuously rotating between sectors—including within tech itself. While price action may appear messy on the surface, the underlying market condition remains constructive. Breadth continues to be healthy, with participation extending beyond the mega caps into higher-beta areas such as small caps (RUT) and SEMI. That tells me institutions are still willing to take risk rather than hide in defensive sectors.
As I've said many times, my primary focus is always the overall market condition, not individual sector rotation. Rotation is simply the result of capital repositioning. The real question is whether institutions are accumulating inventory for the next leg higher or quietly distributing before another leg lower. So far, I continue to lean toward accumulation. The market is digesting gains while capital rotates ahead of earnings season at the end of July.
MSFT Outlook
MSFT is behaving no differently than the rest of the Mag 7. At the moment, there is no clear institutional leader. Capital is rotating across sectors rather than aggressively concentrating into mega caps. This is a classic wait-and-see environment, where price spends time testing liquidity, absorbing supply, and building a new base. Leadership won't become obvious until institutions decide to rotate meaningful exposure back into the Mag 7.
From a technical perspective, 390 remains the key level. It represents the approximate institutional cost basis following the decline from 460 and is the area where I expect the majority of accumulation and testing to occur. My previous entry around 390 was simply early—I anticipated the level before allowing price to complete its pullback and absorption process.
Price has now tested this area multiple times. My plan remains unchanged: I will look to add only if MSFT can reclaim 390 cleanly, hold above it, and confirm the move with expanding volume. Until then, patience is the edge. In a rotational market, waiting for confirmation is often more valuable than predicting the bottom.
Bottom line:
I remain focused on the health of the overall market rather than day-to-day rotation. As long as breadth, credit markets, and higher-beta sectors continue to support risk appetite, I view the current environment as consolidation within an ongoing accumulation phase—not evidence of broad distribution. The leaders will reveal themselves once institutional capital rotates back into the mega caps. Until then, let the market show its hand. 
Long
PLTR Soared 3,400%, Then Sank 35%. What Does Its Chart Say Now?Palantir NASDAQ:PLTR has struggled for some nine months now, falling more than 35% after the cybersecurity stock enjoyed a long, nearly parabolic run that saw it gain some 3,400% between December 2022 and November 2025. Can the stock turn its fortunes back around? Let's see what its chart and fundamentals say.
Palantir's Fundamental Analysis
PLTR will next report quarterly earnings in about four weeks' time, releasing fiscal Q2 results in August.
Although management has yet to set an official date for Palantir's earnings release the Street is looking for the company to show $0.35 in adjusted earnings per share on about $1.81 billion of sales.
If those numbers are what actually hit the tape, that would represent about 119% of year-over-year profit growth on roughly 80% in y/y revenue gains.
Meanwhile, analysts' consensus estimates for the company's full-fiscal-year results call for 97% year-on-year earnings growth and a 73% y/y sales increase. Growth like that doesn't come easily for large-cap stocks.
And impressively, 20 of the 23 sell-side analysts that I know of who cover PLTR have increased their earnings estimates since the quarter began. Zero analysts have reduced their estimates, while three have made no changes.
Bank of America analyst Mariana Perez Mora (rated at five stars out of a possible five by TipRanks) recently reiterated her "Buy" rating on the stock, although she hasn't set a price target on PLTR for a while.
Palantir's Technical Analysis
Now let's go to PLTR's chart going back some seven months and running through Wednesday afternoon (July 8):
Readers will first see that Palantir developed a falling-wedge pattern of bullish reversal that lasted from late 2026 into May.
Marked with tan shading at the chart's left, this set-up didn't really produce much for the stock. Palantir tried to break out of the pattern in late May and rally, but failed to do so.
But interestingly, the stock's aborted breakout ended up developing into the first portion of what I think might become an inverse head-and-shoulders pattern (which also predicts bullish reversal).
Marked with green shading at the chart's right, this pattern looks like it's close to two-thirds of the way toward completion.
I've drawn in what could become the pattern's right shoulder if Palantir falters -- which it seems to be doing at its 50-day Simple Moving Average, or "SMA," marked with a blue line at $133.70 above. (The stock closed Monday at $130.04.)
Should Palantir come back, break through and hold the 50-day SMA, then we'll stop looking for an inverse head-and-shoulders pattern.
Instead, portfolio managers would likely have to make decisions on their allocation weightings in the stock in preparation for a potential run at Palantir's 200-day SMA (the red line at $157.10 above).
Until then, the pivot for what might be a bullish pattern in the making would likely stand at $136. (Again, PLTR ended Monday at $130.04.)
Moving on to the other technical indicators above, Palantir's Relative Strength Index (the gray line marked "RSI" at the chart's top) has improved recently, but is struggling to hold above the neutral line.
The stock's daily Moving Average Convergence Divergence indicator (or "MACD," denoted by blue bars, a black line and a gold line at the chart's bottom) has improved as well, but needs more to become strongly bullish.
On one hand, the histogram of the stock's 9-day Exponential Moving Average (or "EMA," marked with blue bars) has moved into positive territory. That's a short-term bullish signal.
Additionally, the 12-day EMA (the black line) is running above the 26-day EMA (the gold line). That's bullish as well. However, that signal's degree of bullishness is somewhat muted by the fact that both of those lines are running below the zero-bound.
(Moomoo Technologies Inc. Markets Commentator Stephen "Sarge" Guilfoyle was long PLTR at the time of writing this column.)
This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
The Analyst Ratings feature comes from TipRanks, an independent third party. The accuracy, completeness, or reliability cannot be guaranteed and should not be relied upon as a primary basis for any investment decision. The target prices are intended for informational purposes only, not recommendations, and are also not guarantees of future results.
Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC.
TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform. 
Long
Long
$IBM , IdeaSome charts require interpretation. This one required labels, so we gave the zones their proper names: First Stop, Do or Die, and Panic. The map explains itself.
IBM has spent over a year building a wide distribution range, and price is now breaking down from the bottom of it. On a weekly timeframe, that is not noise, that is a decision. What happens next plays out over years, not weeks, and we see three paths.
Path 1: The breakdown turns out to be the fakeout. Buyers reclaim the range immediately, the shakeout traps the sellers, and price begins the long climb toward the First Stop zone high above. The strongest version of the bull case, and the least patient one.
Path 2: The honest path. The breakdown follows through and price descends into the Do or Die zone, the last major structural support on the chart. The name is not decoration. If buyers show up there with conviction, the entire correction becomes the launchpad, and the destination is the same First Stop, just on a longer road.
Path 3: Do or Die, and the answer is die. Support fails, conviction evaporates, and price capitulates into the Panic zone below. That is where forced sellers finish and generational buyers begin. If price ever prints there, fear will be the loudest voice in the room, which is usually the moment it stops being right.
Notice the asymmetry: two of the three paths end at the First Stop. Even the ugly one likely resolves higher eventually, it just charges a much steeper emotional toll on the way.
We are not predicting which road IBM takes. We are watching how price reacts at each zone, because the reaction is the only signal that pays.
EQC follows the reaction.
Hidden in plain sight. EQC.
Like, Follow, Boost, Join, Thank You!
Financial Disclaimer: This post is not financial advice. I am not your financial advisor, your crypto influencer, or your emergency hotline when volatility discovers your stop loss. Always do your own research and never trade solely because colorful arrows suggest a brighter future. 
Short
Long
