Palantir’s Uptrend May Be at Risk

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Palantir Technologies has climbed steadily since the summer, but some traders may think the run is nearing an end.

The first pattern on today’s chart is the series of higher lows since early August. The software company is now under that line, which may suggest its uptrend is at risk.

Second, PLTR has made lower highs while holding its February 3 low of $78.47. That descending triangle is potentially bearish.

Third, prices have failed to hold the 50-day simple moving average. Is its intermediate-term direction changing?

Fourth, the 8-day exponential moving average (EMA) is below the 21-day EMA. Prices also hit resistance at the 8-day EMA yesterday and MACD is dropping. Those patterns may be consistent with a short-term downtrend.

Finally, PLTR is one of the most active underliers in the options market. (It’s averaged about 1.3 million contracts per day in the last month, according to TradeStation data.) That could make some traders look to position for moves with calls and puts.

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