Palantir Stock Looks To Be Entering A Critical Time In A Pattern

Palantir Technologies Inc PLTR shares are trading lower Tuesday although the company reported good third-quarter earnings results. The company reported quarterly earnings of 4 cents per share, equaling the analyst’s estimate. The company reported quarterly sales of $392.00 million beating the analyst estimate of $385.02 million.

Palantir was down 9.21% at $24.30 Tuesday afternoon at publication.

Palantir Daily Chart Analysis

• The stock is at the end of what technical traders call an ascending triangle pattern and hasn’t made a strong push in either direction yet, although in theory it should at some point.
• The area at $25 has been where the stock has found resistance and been unable to break out for a very long period of time, even after a couple of attempts. The higher low trendline has been a place where the stock has been able to bounce previously and may continue to in the future.
• The stock crossed below both the 50-day moving average (green) and the 200-day moving average (blue) Tuesday, indicating the sentiment in the stock looks to be turning more bearish.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) saw a dip lower Tuesday and pushed down to 44 on the indicator. This shows the stock is now seeing more selling pressure than it is buying pressure, possibly a sign that traders should be wary especially with the moving averages being crossed at the same time.

See Also: Why Palantir Shares Are Falling

What’s Next For Palantir?

Bullish traders want to see the stock bounce back and cross above the moving averages and the $25 resistance line. Bulls then want to see a period of consolidation above the resistance line for the stock to possibly start pushing higher.

Bearish traders want to see the stock be able to stay below the moving averages and for the stock to cross below the higher low trendline. If the stock can cross below the higher low trendline and hold below it. If the stock can hold below this trendline it may see a further bearish push in time.

Photo: Bruce Mars via Unsplash