Here's Our Plan for Palantir With Shares Now in Key Price Band
We're closely watching these two technicals for a 'shift.'
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The market is trading off today with more than a few fingers pointing at some of the weakness in what folks have termed “the AI trade.” This is weighing on some of the Pro Portfolio’s chip and software positions.
While we used recent weakness to pick up additional shares of ServiceNow NOW yesterday, with our trades this morning, we also noted that Palantir PLTR and Axon Enterprise AXON remain on our shopping list.
In Friday’s Weekly Roundup, we shared the following for Palantir shares as they closed last week at $177:
With Palantir shares, while we see support near $150, we also see a gap in the chart that would close if the shares reached $155 to $160. At such levels, the risk-to-reward tradeoff skews very favorably against our $190 target.
While we are in that $155-$160 band, when we look at the chart below, the MACD (moving average convergence/divergence) has yet to turn, which suggests the shares could see additional downside in the near-term. Support at the 50-day moving average has moved up to $152.19, and that’s the level we’ll be watching to see if we see a shift in the MACD similar to the one we saw with NOW shares earlier this week.
Remember that we will want to see a positive test of support at the 50-day moving average before making a move.
At the time of publication, TheStreet Pro Portfolio was long PLTR, NOW and AXON.
