Palantir: Now you should worry!

Palantir – The mood of investors

The discussions around Palantir on social media platforms give a clear signal about the assessments and moods around the title. Currently, negative opinions are piling up overall in the comments and opinions in the past two weeks. In contrast, predominantly positive topics around the value were addressed in the past days. Thus, our editorial team comes to the conclusion that the company should be classified as “Hold”. In summary, the editorial team is thus of the opinion that the Palantir share is appropriately valued at “Hold” in relation to investor sentiment.

Palantir: What does technical analysis reveal?

A look at the chart performance of a stock using the moving average can be used to determine the current trend of the security. Let’s look at the moving average of the closing price of Palantir stock from the last 200 trading days. This value is currently $9.65. This is significantly below the last closing price (USD 7.37) (difference -23.63 percent). On this basis, we thus rate the share as “Sell” How does this calculation look if the moving average is determined on the basis of the last 50 trading days? For this one ($7.96), the last closing price is also below the moving average (-7.41 percent difference). Palantir stock is thus given a “sell” rating on this shorter-term basis as well. In sum, Palantir stock is thus assigned a “Sell” rating for the simple charting technique.

Too much of a good thing – the stock is overbought

With the help of the Relative Strength Index (RSI), an indicator from technical analysis, a statement can be made as to whether a security is “overbought” or “oversold”. For this purpose, the upward and downward movements of an underlying security over time are put into relation. Let’s take a look at the RSI of the last 7 days for the Palantir share. The value is currently 73.25. Accordingly, the security is overbought, so we assign a “Sell” rating. The RSI of the last 25 trading days is less volatile than the RSI7 and complements our analysis with a longer-term view. In contrast to the RSI of the last 7 trading days, Palantir is neither overbought nor -sold on this basis. Thus, the stock’s divergent rating for the 25-day RSI is a “hold” rating. Overall, the analysis of the RSIs on Palantir thus provides a “Sell” rating.

What is the sentiment picture?

One of the soft factors in the assessment of a stock is the long-term observation of communication on the network. From this point of view, the stock of Palantir has given the following picture for the past monthsThe intensity of discussion, which is mainly shown by the frequency of word contributions, has produced only weak activity on the net in this regard. Therefore, Palantir receives a “Sell” rating for this factor. The so-called rate of change in sentiment experienced hardly any changes during this period. This is equivalent to a “Hold” rating. Thus, Palantir is overall a “Sell” value.