- Palantir showed a little bit of rare weakness during the trading session on Monday, as the $190 level looks to be a significant resistance barrier.
- That being said, we just had an earnings call a week ago that was strong, even stronger than anticipated.
- There’s also a gap underneath that has yet to be filled, so I think a certain amount of interest might be at that level as well, just due to typical technical analysis.
That being said, the market loves Palantir, and therefore it’s really difficult to get bearish. In other words, I have no interest in shorting this market, but if we start to fall apart, I will just simply be patient enough to buy this stock at a lower level. Of particular interest is the $160 level as it is the bottom of that gap, but it’s fairly rare that Palantir falls apart like that. Ultimately, I do think that a pullback is more likely than not, but I also could see the $175 level offering pretty significant support as well.
Seasonality
Keep in mind that this is in exactly the strongest time of year for Wall Street typically, and volume is down overall. However, pallet here is one of the stocks that everybody is trying to run into, so the volume in Palantir is stronger than most other stocks, and of course Wall Street tends to jump into all of the same names over and over, so I do think there is a bit of a “built in bid” when it comes to PLTR.
In other words, despite the fact that this is a market that is probably struggling to find a little bit of volume and momentum to continue the overall short-term pop higher after earnings, this just means that if you are patient enough you will probably find a lower price that you can start buying from. The 50 Day EMA is racing toward the $150 level, so I think that’s also a potential floor in the market. It’s not until we break down below there that I would step back and start to look at the weekly charts for signals.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.