Planet Labs (PL) Price Forecast: Breakout Watch Above Key Resistance

Relative Strength Supported by Demand Tailwinds

Planet Labs PBC (PL) has been showing notable relative strength as broader market conditions remain under pressure. The company, which operates the largest fleet of Earth-imaging satellites, continues to benefit from steady demand tied to defense and intelligence applications – helping sustain its current bullish trend.

Weekly Outside Week Signals Strength

This week, PL formed a bullish outside week on the weekly chart, signaling potential continuation if confirmed. A weekly close above last week’s high of $26.92 would validate the pattern. As of Wednesday, the stock reached a high of $27.09 and is on track to post its highest weekly close in eight weeks, surpassing the prior mark of $25.28 set two weeks ago. That would further reinforce improving momentum across higher time frames. The monthly chart provides additional signs of strength, with a monthly bullish continuation signal triggered above last month’s high of $27.57.

Pullback Low Anchors Five-Week Advance

The current advance marks the fifth consecutive week of gains following a February pullback low of $19.98. That decline completed a 50% retracement of the prior upswing, where buyers stepped back in. Notably, support was maintained around the 50-day moving average throughout the correction. Even when price briefly dipped below the line, it quickly recovered, closing back above it – a sign of underlying demand. Since then, the 50-day average has continued to act as a reliable support level, including a successful test earlier this week.

Compression Phase Near Key Moving Averages

Price action since the February low has developed into a tight rising channel, with the 50-day moving average aligning closely with trend support. More recently, the 20-day moving average has converged with the 50-day line, strengthening the significance of this support zone. This alignment shows price compressing as volatility declined and it often precedes expansion phases, particularly when accompanied by rising momentum.

Breakout Attempt Backed by Volume Expansion

Early signs of a potential breakout are emerging. Tuesday’s session saw a successful test of both the 20-day and 50-day averages, followed by a strong advance to a new closing high of $27.08 for the current leg up. That move was supported by an increase in volume to a seven-day high, indicating growing participation on the upside.

Key Levels Define Next Move

A decisive breakout above the recent swing high at $27.57 from two weeks ago would further confirm bullish continuation and potentially trigger the next leg higher. Until then, the trend remains constructive, with clearly defined risk levels. Monday’s higher swing low at $23.66 marks a key downside threshold, while the rising 20-day ($25.19) and 50-day ($24.76) moving averages provide nearby dynamic support levels to monitor for pullback entries or signs of trend weakness.

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