PLTR/USD Daily TA Cautiously Bullish
PLTR/USD Daily cautiously bullish. *It's become rather apparent that even after an 85% drop from its ATH, investors still aren't done selling. Taking a closer look at their financials and it's clear that they are a tech growth company that intends to be here for a while but face the reality that they may be operating in a high interest rate environment for a year or more. Financials summary: negative income since going public due to arguably egregious spending on Selling/General/Admin Expenses (that exceed Gross Profit which is 1.20b); Shareholder Equity is at 3.32b as of Q1 2022 and they have maintained minimal debt since IPO; lastly, they started producing Free Cash Flow last year in their fourth year being publicly traded and continued to do so in Q1 2022. So even though they have a healthy balance sheet and are generating positive cash flow, growth companies are often faded in favor of value companies in rising/higher interest rate environments, which helps to explain a lot of the negative sentiment.* Recommended ratio: 65% PLTR, 35% cash. Price is currently retesting $8.52 minor resistance after bouncing from the lower trendline of the descending channel from November 2020. Volume remains moderate (low) and fairly balanced between buyers and sellers as of late but is currently favoring buyers for two consecutive sessions. Parabolic SAR flips bearish at $7.13, this margin is neutral at the moment. RSI is currently trending up at 42.48 but is still technically testing the uptrend line from 01/27/22 as resistance at ~40; if it can continue surging, the next resistance is at 46.81. Stochastic crossed over bullish in today's session and is currently trending up slightly at 93 as it tests 89.92 resistance; the next resistance is max top. MACD remains bullish and is currently trending up at -0.90 as it quickly approaches -0.81 resistance. ADX is currently trending down slightly at 39 as Price is attempting to establish a short term bottom, this is mildly bullish. If Price is able to break out above $8.52 minor resistance, the next likely target is a test of $10.44 minor resistance. However, if it gets rejected here then it will likely retest the lower trendline of the descending channel from November 2020 as support at ~$7.31 before potentially heading lower. Mental Stop Loss: (two consecutive closes below) $7.39.
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