Chart of the Day: Palantir Is Not Immune From the Selling
The big software company may be doing well but the market is the vote that matters most.
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A nice uptrend for Palantir (PLTR) was rudely interrupted by a slew of sellers in the back half of October and pushed the stock to its lower Bollinger band. The location of this band (top chart) is curious, a spot of previous resistance that is now good support. Perhaps this is where Palantir bounces (if the market does, too).
The company will report earnings this coming week and expectations are high, as usual. The trend of the stock though is suspect, given the latest move locks the price chart into neutral (amber color).
Momentum has turned lower, the MACD has actually been on a sell signal for weeks, but money flow is bullish. That is a headscratcher, but relative strength is taking a nose-dive.
There is nothing too bullish about this chart and the indicators now, which tells us maybe the smart money is heading out before the next earnings report. No doubt the numbers will be good like last time, but this is not August when market momentum was much more bullish.
We like Palantir in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
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At the time of publication, TheStreet Pro Portfolio was long PLTR.
