Palantir Shares Hanging Onto Support In Pattern, Setting Up For Strong Move: Technical Analysis

Palantir Technologies Inc. PLTR shares are trading lower Wednesday, as the company expands to South Korea in a newly announced deal with shipbuilding giant Hyundai Heavy Industries Group. The stock saw a strong down day yesterday following a rise in US Treasury yields, which has pressured growth sector assets.

Palantir was down 3.63% to $17.52 at time of publication.

See Related: Palantir, Hyundai Collaborate In A Deal Worth Over $25M

Palantir Daily Chart Analysis

• The stock looks to be hanging at support in what technical traders call a falling wedge pattern. The stock is declining with narrowing highs and lows and could see a strong move in either direction if pattern support or resistance is broken.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been forming higher lows throughout the past few weeks and sits at 37. This indicates the stock is seeing more selling pressure than buying pressure, but the buying strength has slowly been increasing.

What’s Next For Palantir?

Palantir has been trading in a falling wedge pattern for the past couple of months and is hanging near the support level. If the price drops below this level, the stock could see a strong bearish push.

Bullish traders are looking to see the stock bounce back off support and start heading higher toward pattern resistance. Bulls are eventually looking for a break above resistance and a push higher.

Related Link: Is Palantir Stock Overvalued Or Undervalued?