Palantir Shares Drop 2.34% to $116.70, Moving Away from Its Moving Averages
Palantir Technologies' stock closed sharply lower on Tuesday at Wall Street, at $116.70. The stock is now significantly below its medium and long-term moving averages, amidst a cautious American market environment concerning tech stocks pending Micron's results tonight. The S&P 500 fell 0.78% at the close on Tuesday, June 23, while the VIX settled at 19.23, down slightly by 1.33% from the previous day.
A Deteriorated Technical Setup for the Data Specialist
At $116.70, Palantir Technologies' stock has lost 2.34% compared to the previous close of $119.50. The stock is distancing itself from its primary trend indicators: the 50-session moving average stands at $137.79, approximately 15.3% above the current price, while the 200-session moving average is at $159.52, even higher. The RSI at 51 indicates a neutral situation, neither in overbought nor oversold territory, but the MACD remains negatively oriented with a line at -4.55 below its signal line at -2.53, signaling a bearish momentum that has not yet reversed. This technical setup illustrates the stock's difficulty in regaining its footing after several sessions of consolidation.
An Unsupportive Macroeconomic Environment for Tech
Palantir's decline is part of an unfavorable session for the entire American tech sector. Alphabet also fell by 0.77% on Tuesday, while Microsoft was an exception, gaining 1.80%. The S&P 500, the main barometer of the New York stock market, ended down 0.78% at 7,414.2 points on the closure of June 23. The overall context remains marked by a more restrictive turn by major central banks, with nine members of the FOMC now anticipating at least one additional rate hike by the end of 2026. The yield on the 10-year U.S. Treasury is around 4.50%, a level that mechanically weighs on the valuation of growth stocks like Palantir, particularly sensitive to the rise in long-term rates.
