Stock Of The Day: Where Will The Palantir Bloodbath End?

Shares of Palantir Technologies Inc. (NASDAQ:PLTR) are selling off again on Thursday. They have been in a steep decline along with most of the technology sector. But there could be support for Palantir around the $130 level. This is why we have made it our Stock of the Day.

Supply and demand drive the market. If there is more supply than demand, meaning there are more shares to sell than to buy, the price will go down.

This is because the investors and traders who wish to sell must undercut each other's prices to attract buyers. This action results in a downtrend.

These downtrends tend to end or at least pause when they reach support levels. At these levels, there is enough demand, or shares to be bought, to absorb all the supply, or shares that are for sale.

As you can see on the chart below, the $130 level was support in June. Now there is a chance that it will become a support level again.

Levels that have previously been support can become so again because of remorseful and regretful traders and investors.

People who sold around $130 in June have regretted it ever since the price went up. Some of them vowed to buy their shares back if they could get them for the same price they were sold at.

Now that Palantir has dropped back to around $130, these remorseful traders and investors are placing buy orders. At least for now, these orders have put a floor under the price.

If some of the people who are looking to buy shares become impatient, they will raise their bid price or the price they are willing to pay. If other impatient buyers see this, they might do the same.

It could mean that Palantir might head higher from here.

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