Chart of the Day: Time to Buy Palantir After Fall From Grace
An opportunity emerges after this AI name falls to support.
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There has been lots of fanfare and excitement with Palantir PLTR over the past few months but we decided to wait for our chance to add the name, and we did so after the stock made a dramatic fall from grace. We picked up shares to start this week and added more on Wednesday.
We recently added Palantir to the bullpen and then quickly put the name into the main lineup. We targeted certain price levels prior as a way to gauge where investor interest would be located if the market should swoon. We looked at the 100-day moving average as a logical choice as it was the first spot where we could find good buyers. That level was right around $78 to $82, and that was a correct call and allowed us a nice entry point.
Make no mistake, the stock is challenged as indicators are solidly bearish. There's no question that Palantir has work to do, in fact, if the stock can build a base between $75 and $85, that would be ideal.
Notice the momentum has been released, there is nothing to say the stock is going to rip higher based on the stochastics (pane four). Money flow has tanked as the MACD nose dives, the parabolic stop and reverse (SAR) is in bearish mode. Again, nothing bullish here, but a 40% pullback is nice to pull the trigger and add shares.
We like Palantir and rate it a two in TheStreet Pro Portfolio, stockpile on pullbacks.
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At the time of publication, TheStreet Pro Portfolio was long PLTR.
