PLTR Weekly Chart: Raindrops, Anchored VBP, Anchored Accumulation/Distribution & Analyst Estimates

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  1. *This is a weekly chart of Palantir using the weekly Raindrop candles to visualize volume flow on a weekly basis. This case study also focuses on other technical indicators such as the anchored accumulation/distribution and the anchored volume by price (VBP) to get an idea of money flow and where that money flow distribution is occurring since the start of the uptrend in 2020. The “analyst estimates” feature is also used in this case study to show the overall sentiment by analysts, which is not representing the bullish technical setup into the last quarter of 2021.*

    1. This number shows the anchor point for the volume by price which measures the volume distribution at different price levels. This anchor point starts at the beginning of the uptrend in October 2020 very soon after the initial public offering. Whenever the anchored volume by price is used, it is imperative to start it at the beginning of trends, swing highs, swing lows, and important events that occur which changed the “status quo”.

    2. This number shows the point at which the “quarter to date” anchored accumulation/distribution indicator went from negative to positive showing money flowing back into the stock in August of 2021. As you can see, the stock has made a large move to the upside since this crossover occurred. Whenever, the crossover is from green to red, traders should anticipate a potential continuation down.

    3. This number shows the “volume shelf” which is something that occurs when using the anchored volume by price when there are many shares holding at a localized price zone. This “shelf” creates a base for price to move up off when the price is at or above it. When the price is below one of these “shelves”, it will initially act as a supply zone for the price to get through.

    4. This number shows the last two weekly Raindrop candles poking above the horizontal resistance line that is part of the long-term ascending triangle. A Raindrop candle is a volume-weighted candle that shows the volume profile for a specific timeframe. In this case, you can see that there are two “bulges” above the horizonal resistance line which show volume occurring above this level. Based on the volume profiles of the last two weekly candles partially above this resistance line, you can some to the conclusion that buyers were willing to absorb supply above resistance, showing conviction on the demand side.

    5. This number shows the sentiment of analysts over the last year. As you can see, there are 3 “buy” ratings, 7 “hold” ratings, and 7 “sell” ratings. This analyst sentiment does not come to the same conclusion as the technical setup. This feature allows you to take in both sentiment as well as technicals.

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