Despite the morning momentum in Palantir stock, shares still remain trapped in a downtrend.
Downtrend resistance (blue line) remains intact, while the stock is being rejected by the 21-day moving average. Further, it didn’t have the strength to test its 10-week moving average, which is also acting as resistance.
On the plus side, it is holding up above the 10-day moving average and the key $21 level. However, bulls must keep an eye on the latter. If Palantir stock loses this level - which has the looks of a descending triangle, a bearish technical pattern - then it puts last month’s low in play at $20.18.
If Palantir loses $20 and cannot reclaim it, it could put a notable drop in play, potentially down to the $15 to $16 range.
On the upside, bulls really need to see Palantir stock take out the levels that rejected and/or have been weighing on the stock price over the last few months.
Specifically, those levels include the 10-week and 21-day moving averages and downtrend resistance.
If the stock can clear those marks, it quickly puts the 100-day moving average in play, followed by the March high, up $27.47. That level will likely be accompanied by a test of the 50-day moving average.
slowly. ai zai