Will PLTR Stock Breakdown $14 or Bounce Back?
Palantir Technologies Inc. PLTR stock price fell 26% in the current month and formed a bearish pattern. It lost the bullish momentum near $20.00 and PLTR share prices witnessed profit booking.
Palantir stock price dropped below the 50-day EMA showing that the short-term trend is reversing down. However, the 200-day EMA placed slightly below the current price which is likely to act as strong support for bulls.
In the past 2 months, PLTR stock price performed well and generated a nominal return for its investors.
At the beginning of August, it hit a 52-week high at $20.24 and grabbed the attention of genuine investors. Unfortunately, the broader market turned bearish and most of the technology companies were badly impacted.
Palantir Technologies Inc. (NYSE: PLTR) released the previous quarter earnings on August 7, 2023. It reported an EPS of 0.05 and revenue of $533.317 Million. The earnings were near the estimates despite that PLTR stock price reacted negatively and continued the downfall.
Palantir stock price closed the previous session at $14.53 with an intraday rise of 2.76%. The market capitalization stands at $31.25 Billion.
Is the Correction Over in Palantir – PLTR Stock?
Palantir Technologies Inc. PLTR stock price is in the correction phase and sellers are active in the supply zone. However, for the past few days, the buyers have tried to defend the $14.00 support.
It shows that the buyers of PLTR shares are not willing to give up. Therefore, it will be interesting to see how prices will react in the coming few sessions. Till Palantir’s stock price sustains above the 200-day EMA the probability of bounce back remains high.
However, if the PLTR share price slips below the EMA then more downfall will begin. The technical analysis suggests the correction in the PLTR shares has not been over and $14 support is at risk.
Will PLTR Stock Price Consolidate?
PLTR stock price formed a Doji candle on the weekly time frame. It had corrected a lot from its previous high so narrow range consolidation is possible. If the Palantir shares consolidate for a few weeks near $14 then the signs of base formation might be visible.
Till Palantir Technologies stock trades below $17.00, the prices are expected to trade with a bearish bias. Also, any short-term pullback rally will face difficulty and might face rejection from higher levels.
Conclusion
Palantir Technologies Inc. PLTR stock price fell 26% after hitting the 52-week high. It formed a bearish pattern and sellers seemed more active. The technical analysis in PLTR stock suggests the correction has not ended and a $14 breakdown is possible.
Technical levels
- Resistance levels: $17.00 and $20.00
- Support levels: $13.50 and $11.37
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
