PLTR NYSE:PLTR - On Friday, July 21st, 2023, Palantir Technologies Inc.'s stock experienced a decline of -4.09%, falling from $17.13 to $16.43. This marked the third consecutive day of decline. Throughout the last trading day, the stock showed significant fluctuations, ranging from a low of $16.00 to a high of $17.49, reflecting a 9.31% swing. Over the past 10 days, the stock price has risen on 6 occasions, resulting in a total gain of 7.11% over the past 2 weeks.
While the trading volume increased by 1 million shares on the last day, it occurred amid falling prices. This divergence between volume and price may be an early warning sign, and the risk could slightly increase in the next couple of days. In total, 62 million shares were bought and sold, amounting to approximately $1.02 billion.
Currently, the stock is situated in the lower portion of a wide and strong rising trend in the short term, which typically presents a favorable buying opportunity. However, if the lower trend floor at $16.31 is broken, it may indicate a slower rate of rising and serve as an early warning for a potential trend shift. Based on the current short-term trend, the stock is projected to rise by 128.20% over the next 3 months and, with a 90% probability, maintain a price range between $37.23 and $42.43 at the end of this 3-month period.
In terms of support, risk, and stop-loss levels, Palantir finds support from accumulated volume at $16.30, which could offer a buying opportunity as an upward reaction is expected when this support level is tested. The stock exhibits considerable daily volatility, with a large prediction interval from the Bollinger Band, classifying it as "high risk." On the last day, the stock moved $1.49 between its daily high and low, resulting in a volatility of 9.31%. Over the past week, the stock's daily average volatility has been 7.10%. A recommended stop-loss level is set at $15.64 (-4.82%) based on a sell signal from a pivot top identified 3 days ago.
Expectations for the upcoming trading day of Monday, July 24th, 2023, suggest Palantir Technologies Inc. to open at $16.64 and move within the range of $15.48 and $17.38 throughout the day, considering the 14-day Average True Range. This gives a possible trading interval of +/- $0.95 (+/- 5.80%) from the last closing price. If Palantir Technologies Inc. exceeds the calculated swing range, there could be an estimated 11.60% movement between the lowest and highest trading prices during the day.
Since the stock is closer to the support from accumulated volume at $16.30 (0.79%) than the resistance at $16.60 (1.03%), our system perceives the trading risk/reward intra-day as attractive and believes that profits can be made before the stock reaches the first resistance level.
Regarding insider trading activity, in the last 100 trades, there were 7.85 million shares bought and 10.51 million shares sold. The last trade by Palantir Technologies Inc. occurred 56 days ago, involving the purchase of 0 shares. Overall, insiders are selling more stocks than they are buying, which can be considered a negative signal.
In conclusion, several short-term signals, along with a generally positive trend, indicate that the current level may present a buying opportunity, suggesting that there is a fair chance for Palantir stock to perform well in the short term. However, investors should remain vigilant given the potential risks, especially considering the stock's high volatility and the recent divergence between volume and price.
