The Palantir share price has taken another step to prepare for additional downside moves. Triggering several days of losses was last week’s downgrade of the stock by investment bank Credit Suisse.
The decline comes as investment bank Credit Suisse said on Tuesday that it had applied a neutral rating to the stock. Analyst at the bank, Phil Winslow said that despite the company’s Foundry product, the company needed large deals from a few companies to even out its financials.
As a result of the rating, the markets could see some additional decline in the stock as it forms a bearish flag on the daily chart.
Palantir Share Price Outlook
The decline on the daily chart follows two steep down days last week and a period of consolidation, forming a potential bearish flag. A breakdown of the 22.61 support completes the flag and opens the door for sequential touches of 21.79 and 20.79. These pivots need to give way if the pattern is to achieve a measured move to the south.
On the flip side, the flag’s bearish outlook is invalidated if a bounce on the 22.61 support extends above 24.26. This move also needs to take out the 200-day moving average if the 26.24 and 27.50 upside barriers will become additional targets for the bulls.