The Palantir stock price has once again been drawn to the magnetic $23.00 level. This may predict PLTR is on a path to $17.00.
Palantir Technologies Inc (NYSE: PLTR) closed Monday’s session marginally lower at $22.95, down $0.34 (-1.46%).
Despite a wild ride in 2021, Palantir is trading at close to the same level it kicked off the year. When the opening bell rang on the New York Stock exchange on January the 4th, the opening print for PLTR was $23.91. Within a month, the Palantir stock price was more than 85% higher, at $45.00.
A month after that, PLTR was again trading at $23.00. In the four months following, PLTR has gyrated either side of $23.00, in a wide $17.00- $27.50 trading range. This has resulted in the 50, and 100-day moving averages ($23.14 and $23.60, respectively) converging just above the $23.00 pivot price.
With Palantir retreating from a 28th of June high at $27.50, should history repeat, PLTR may now be due a visit to the lower end of this trading range.
The daily chart highlights the magnetic appeal of $23.00. May’s decline pushed PLTR below this threshold by 25% to $17.06. Additionally, in June, when the price reversed higher through $23.00, it advanced a further 21% in the following four weeks.
Palantir appears to be breaking down below $23.00 once more. Furthermore, PLTR is below the 50 and 100 DMA’s. And should the price finish lower in today’s session, in my opinion, the breakdown would be confirmed.
This would target the $17.20 May low.
However, if the stock reclaims $23.00 and clears the moving averages, it should open the door to $27.50.
Whichever scenario, if any, plays out, I would not discount PLTR finding its way back to $23.000 once again.
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