Palantir: Chart of the Week
We’re going to focus in on Palantir Technologies; PLTR is the symbol.
More recently, the stock has had an enormous ride higher from the low- to mid-single digits and now is up to the low- to mid-teens. Since the start of May, the stock is up probably close to 100%. It had some really strong price bars here, along with some really heavy volume. We’ll talk about that in just a moment.
Fibonacci retracement shows where Palantir is headed
You can see I traced out a Fibonacci on this weekly chart of Palantir. The daily chart is obviously showing some parabolic qualities here, so we’re not going to use that. We’re going to go back to the weekly chart to see if we can find out some levels where we could head to.
Tracing back to the mid-September highs in 2021, we do a Fibonacci retracement from that level (about $30) all the way down to the more recent one at about $6 at the end of 2022. We get a 50% retracement at about $18, and it just crossed that 38% retracement line, so it had a lot of room up here. I suspect it’s going to bounce around here in this range for a little while (between 1480 and $17 or $18) before it makes another run up here. I think ultimately the goal is to get the stock up to about $30.
Technical indicators are on a buy signal
Now take a look at some of the indicators. We can see Chaikin Money Flow is starting to get positive again on this weekly chart. The MACD on the weekly has been on a strong buy signal since the middle part of 2022 when the stock really wasn’t doing a whole heck of a lot. But still, MACD was showing us some positive bullish qualities through 2022.
And then finally the last two: On-balance volume. Look at this surge in volume the last couple of weeks. It’s really been very strong. This is a positive divergence when we see prices starting to break out with strong volume. On-balance volume is cumulative volume for a stock or an index, and that is on a positive divergence right now.
And then stochastics we see is quite overbought here. Could it roll over? Sure but again we think that this support level from the Fibonacci retracement, call it about 1470, is pretty good strong support for the stock.
So that’s Palantir. I’m long the stock and I think in with some options as well too. I think that this the stock can really make a move over the next coming weeks and months. It’s not going to take off on you after this long, strong move that we’ve had since the beginning of May. But still, sideways action over here right back up through $20 would be a a good sign that the stock is going to make a move back to the $30 level.
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