PLTR News: Palantir Technologies sinks as retail follows Ark Invest’s trim
- NYSE:PLTR dropped by 6.22% on Thursday as growth stocks struggled to start July.
- Ark Invest’s Cathie Wood cut over $18 million in Palantir shares after the stock’s recent run up.
- Support is breaking down for Palantir as the stock hits its third straight red session.
NYSE:PLTR continued its tumble on Thursday as growth sectors kicked off the second half of 2021 in the red. Shares of Palantir fell by 6.22% to close the first trading session of July at $24.72. The drop for Palantir officially puts the stock below its 200-day moving average price of $25.36, which can be interpreted as a bearish signal if it continues to fall below the next level of critical support which is the 21-day moving average price of around $24.00.
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One catalyst that seems to be in play on Thursday is that Ark Invest’s Cathie Wood sold $18.7 million in Palantir shares from the Ark Next Generation Internet ETF (ARK.W). The total sale is equivalent to 710,825 shares, although it should be noted that the ETF still holds just under 4.8 million shares of Palantir, with even more in the flagship Ark Innovation ETF (ARK.K). This follows a trend where hordes of retail investors try to mimic Wood’s trades which are revealed after each trading session. This is another opportunity to remember that ETFs and professional fund managers operate and re-balance funds much differently from an individual investor’s portfolio.
PLTR stock forecast
As mentioned earlier, Palantir is fast approaching its next critical level of support, before the bottom falls out and a bearish downtrend takes over. Thursday marks the third consecutive session that Palantir has fallen, and although the stock is still up about 10% in the month of June, the bullish breakout could be in jeopardy if the stock continues to fall.
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Author
Stocks Reporter
FXStreet
