Palantir Technologies stock continues to trade within a narrowing sideways range ahead of their first-quarter results, to be published on May 11th.
Backed by tech investing titan Peter Thiel, shares in the US-listed data mining company had seemed unstoppable earlier in the year. After reaching a high of $45 per share back in January, the Palantir stock price has been on a steady decline.
At yesterday’s closing price of $23.83, the stock had retreated 47% from its peak.
Like many of its growth stock peers, it seems the Palantir Stock price is suffering from a bout of inertia. You could argue that PLTR has suffered the same fate as many of the meme stocks made popular by the followers of a now-notorious investing forum.
Trading volumes have declined steadily over the last eight weeks, resulting in Palantir stock trading in a narrowing, sideways pattern between $20 and $28 per share.
Bulls may be heartened by the continued support of growth stock investing’s biggest star, Cathie Wood. Wood has been a consistent buyer of Palantir stock since its market debut in October of 2020.
Recent data shows Wood now holds in excess of 20 Million shares across her ARK Innovation (ARKK) and ARK next-generation internet (ARKW) ETFs.
Ahead of the upcoming earnings release, the likeliest scenario is that Palantir stock will continue to trade within the recent channel.
Overhead resistance is seen at $24.50. Provided by a descending trend line linking the highs from March the 15th ($27.55) and the 14th of April ($25.63).
Support comes at $21.68 in the form of a rising trend line. In place from the 5th of March low of $20.18, this connects the 30th of March low ($20.87), and the April low at $21.25.
The market, currently at $23.83, sits just below the first trend line resistance. This may provide a good risk vs. reward selling opportunity. Bears may look to initiate a short position with a stop above the descending trendline. With a view to taking profits towards support at $21.67.
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