Chart of the Day: Is Palantir's Budding Uptrend Sustainable?
The stock has managed to rise up after a nice base, but the market will have the final say.
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Palantir CEO Alex Karp
Palantir (PLTR) has been an enigma. The stock has been tough to read, as when news comes out for the right reasons, the price gets hammered. This has happened more than a few times, but as we see from the chart, below, those moves are far from damaging. In fact, they are more likely to be good buying chances on the dips.
Notice recently the stock pulled back and settled into a zone, call it $125-135 for a couple of weeks. Now, that is not a very strong base, we like to see 4-6 weeks of basing action before the stock starts to make a move.
This recent base seems to be holding firm, the stock making a series of higher highs and higher lows over the past six weeks, and now reflects a bullish bias in the chart. The candles are blue, which is very bullish on the GoNoGo composite of indicators. Money flow remains robust, big institutions are in there buying the stock.
MACD remains on a buy signal, the ADX is down as the trend is starting to cool off, so perhaps a new longer base will be established above the $150 zone. If so, keep your eyes peeled for a buying chance.
We like Palantir in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
Related: How to Plan Trades, Manage Risk in an Uncertain Market
At the time of publication, TheStreet Pro Portfolio was long PLTR.
