$Palantir Technologies Inc.(PLTR)$
Palantir Stock Retreats from Record High Amidst Analyst Downgrade and Sell-Off
Palantir shares have continued their downward trend, retreating from the record high they reached in late December. This recent decline follows an "underweight" rating initiated by Morgan Stanley and reports that Cathy Wood's ARK Investment Management funds have sold off some of their holdings in the company.
Technical Breakdown and Renewed Selling Pressure
Technically, Palantir's stock broke down from a rising wedge pattern in late December and has experienced renewed selling pressure upon retesting the pattern's lower trendline. This technical breakdown has amplified the negative sentiment surrounding the stock.
Key Support Levels to Watch
Several crucial support levels are now in focus for investors. The first key level to monitor is around $66. This price point represents a confluence of support from the mid-November peak, the 50-day moving average, and the 38.2% Fibonacci retracement level (measured from the late October low to the December high). A break below $66 could trigger a further decline towards $59, a level situated below a pennant pattern formed in mid-November, where some investors might consider entering. A more significant correction could lead to a gap fill down to $45, roughly 35% below Tuesday's closing price. This area, marked by twin peaks from October, is also likely to attract buying interest.
Resistance Level on Potential Recovery
Should Palantir's share price recover and resume its longer-term uptrend, the $81 area will act as a major resistance level. Rallies towards this region are expected to encounter significant overhead resistance due to a cluster of peaks just below the stock's all-time high. Investors should closely monitor these support and resistance levels for potential trading opportunities.
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