Confluence of Resistance for Palantir Technologies

Palantir Technologies Inc is a technology company which builds and deploys software platforms for the intelligence community in the US to assist counter terrorism investigations and operations. They have a mission statement which is to help their users solve complicated, data driven problems by writing software which enables effective analysis. They are a relatively large sized company with a market capitalization of approximately $37.7 billion and revenues of over $1 billion last year.

They first listed onto the market in September 2020 and saw some very strong growth, increasing from approximately $9 per share to as high as $45 per share but now currently trade at approximately $20 per share. They have been in a downward trend since the beginning of the year and from a technical analysis standpoint appear to be at an important level as demonstrated below.

Figure 1

As detailed in Figure 1 we can see the downward trendline which they have been trading in over recent months. A Fibonacci retracement has been put in from the beginning of the upward trend since they listed, and they are now approaching the 50% level. This coincides with the downward trend line creating a potential confluence zone.

This level may provide some levels of resistance against the current price actions. It will be interesting to see what the price does over the next few days. If it manages to break this price then we may see a further increase in price, but if it respects this level then we could well see a continuation of the downward movements for a while longer. Either way one to keep a close eye on.

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