NYSE:PLTR is attempting to reverse a downward trend that began at the end of last week.
Palantir remains a retail favorite, and it may be presenting an artificial floor.
Following Ark Invest’s one-day sell-off, Palantir appears to be oversold.
Following its surge to all-time high pricing of $45.00, NYSE:PLTR began June as though it were set to break out of its protracted period of consolidation. Palantir, on the other hand, ended June on a bearish downtrend and began July on a bullish decline. The stock managed to keep support above $24.00 on Friday, which is excellent news for Palantir investors, but if adverse momentum persists, Palantir will search for support around $21.00.
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There could be a hidden benefit for Palantir shareholders: the company continues to be extremely popular among social media retail investors. While Palantir isn’t a full-fledged meme stock like AMC (NYSE:AMC) or GameStop (NYSE:AMC), the company’s popularity serves as a sort of artificial floor. It is frequently cited in the r/WallStreetBets forum and on FinTwit as one of the top stock tickers. Is Palantir doomed to follow in the footsteps of AMC’s rapid rise? Most likely not. There are enough institutional investors that have long-term favorable outlooks on Palantir that the stock will not continue to grow just due to retail momentum.
Many have pointed to Ark Invest’s Cathie Wood’s selloff as the incentive for individual investors to follow suit, given the timing of the recent decline. Palantir appears to have been oversold at this time, given the relative strength the stock displayed during June. Oversold stocks represent some of the best entry points for investors wishing to start or add to their holdings./n
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