Chart of the Day: Is Now the Time to Add More Palantir?
The stock was pounded last week with heavy volume.
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A very sharp move lower for Palantir (PLTR) this past week has us slightly concerned on the one hand, but excited about the dip on the other.
A heavy volume selloff is nothing to be dismissed, and that happened on Friday. Turnover was brisk. We had not seen downside volume like that since the stock was swooning in late August.
At that time, Palantir found a bottom, based for a few weeks and resumed its uptrend. We think that will happen again here this time, but we do not know where a bottom is, likely not at this current level.
Why is that? Basically, Palantir is still above some relevant moving averages and support — a sharp move lower is often meant to test those levels.
Where might Palantir move to? First time probably the 14-day McGinley and then the 100-day moving average if that does not hold firm.
Indicators have started to roll over as well, so we'll be watching these closely. Moving average convergence/divergence (MACD) is almost confirmed for a sell signal, stochastics crossed over and money flow turned down.
This may just be another great opportunity, so watch for the low, wait for the basing period and then strike.
We like Palantir in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
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At the time of publication, TheStreet Pro Portfolio was long PLTR.
