Chart of the Day: Trouble Ahead for Palantir?
It could be a tough row to hoe for the stock.
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While we like the long-term prospects of Palantir (PLTR) , especially with their exciting products and services, the chart shows there is some concern. Big money has been exiting the stock in a big way, and without the support of institutional buyers then sellers come out of the woodwork. Valuation is always a concern with a name like Palantir, which sells at a hefty premium to its peers.
Yet each time the stock has come down and the "doomsday" media chooses to make a mockery of the company, the buyers come in at certain points to support the stock. Notice that happened in November and August last year.
So, with the stock breaking hard to the downside last week and turning purple (bearish on the GoNoGo composite of indicators), where might Palantir land before it turns back up? Clearly the 200-day moving average at near $150 is a logical spot.
Moving average convergence divergence (MACD) is bearish as is money flow. Volume trends have also turned bearish and the parabolic stop and reverse (SAR) is definitely on the bearish side.
Recent pullbacks have been great opportunities. Look for the next one over the next 10-20 points lower.
We do 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.
