There is a lot of interest in Palantir Technologies (PLTR) lately. The company has gotten attention as news spread that fund manager Cathie Wood said her exchange-traded funds bought several million shares of the data-analytics company's stock. Tuesday on its earnings call, the company announced it may begin holding bitcoin on its balance sheet and accept it as payment. Following the results, Real Money's Stephen "Sarge" Guilfoyle discussed how he is trading the stock here.
But what do the charts say?
We reviewed PLTR back on March 8 and wrote that "Making recommendations about stocks that are thinly traded or are new issues is always a little "dicey" as we don't have a strong level of confidence. Despite this drawback I would not be surprised if PLTR worked lower in the weeks ahead."
In the daily Japanese candlestick chart of PLTR, below, we can see that prices did decline from our March 8 review. Tuesday's candle pattern looks like it will be a large bullish engulfing pattern. This pattern can be a bottom reversal and mark the low on the stock. The slopes of the short-term 20-day and 50-day moving average lines are negative but that condition could change soon.
The On-Balance-Volume (OBV) line has been in a decline since the middle of February but that may be coming to an end. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but is getting closer to a cover shorts buy signal.