KEY
TAKEAWAYS
- Palantir inventory’s rise to the third place within the SCTR Report makes it a worthy candidate so as to add to your portfolio.
- The value surge in Palantir inventory after its stellar earnings report may be the start of a bullish transfer.
- Palantir is a inventory that would profit from the AI increase.
Palantir Applied sciences (PLTR) has often appeared within the Prime 10 StockCharts Technical Rank (SCTR) Studies. Extra just lately, it has reached the highest 5, making it a inventory price analyzing.
Palantir is a knowledge analytics firm that would profit from the AI increase. On November 4, after reporting better-than-expected quarterly earnings, Palantir’s inventory worth rose 23% and has continued rising since then. The inventory worth is up over 250% this yr. Given this efficiency and being added to the S&P 500 in early September, PLTR has lots of upside potential.
FIGURE 1. PALANTIR IN THIRD PLACE. The inventory’s current worth motion has made PLTR a contender for a better look.Picture supply: StockCharts.com. For instructional functions.
The weekly chart of Palantir inventory paints the image, and the dramatic worth rise final week could be very clear. After breaking via all resistance ranges, the inventory worth is able to navigate uncharted territories. This makes it tough to forecast Palantir’s inventory worth, however, given how far the inventory worth has come, it is price maintaining a tally of it.
FIGURE 2. WEEKLY CHART OF PALANTIR STOCK. The inventory worth has damaged via all resistance ranges and is now in uncharted territory. How a lot increased can it go?Chart supply: StockCharts.com. For instructional functions.
The day by day chart (see under) reveals that the uptrend remains to be going robust.
FIGURE 3. PALANTIR STOCK’s UPWARD TREND. The SCTR rating has been above 80 for the reason that early levels of the uptrend within the inventory worth. The relative power index and full stochastic oscillator are in overbought territory.Chart supply: StockCharts.com. For instructional functions.
Palantir is buying and selling above its 15-day exponential transferring common (EMA), its relative power index (RSI) is effectively above the 70 degree, and the full stochastic oscillator reveals the inventory is in overbought territory. Discover that the SCTR rating has been above 80 since June 2024, when PLTR began its ascent. The bull run has been occurring for some time, and up to date worth motion reveals that this inventory has lots of momentum.
When To Purchase PLTR Inventory
Palantir inventory’s worth motion after its current earnings report has been euphoric, so a correction could be wholesome. When a inventory is buying and selling at its all-time excessive, it is tough to find out how deep a pullback could be. I’m at the moment utilizing the 15-day EMA as a possible assist degree, though I might need to tighten it relying on how the inventory behaves within the subsequent few buying and selling classes.
There are indicators of a pullback surfacing. The pink physique of the final candlestick bar is the primary since its final earnings report. Word the decline in buying and selling quantity whereas costs have been rising. These are indicators of a worth decline, however, if the general market stays bullish, the value decline will not be deep sufficient to succeed in the 15-day EMA. I’d shorten it to a 10-day or perhaps a 5-day EMA to make use of as a assist degree.
I might enter a protracted place when the value reverses on rising quantity and maintain it till momentum decreases sufficient to justify exiting it. I might use a trailing cease to exit the place. Since PLTR is an AI-related inventory, I might additionally monitor the efficiency of different AI shares. If curiosity tapers, I might both keep away from including lengthy positions or, if I personal the inventory, promote not less than a few of my positions.
The Backside Line
I’ve added PLTR to my WatchLists ChartList (to prepare your ChartLists, use the StockCharts ChartList Framework) and to certainly one of my Dashboard panels to observe it commonly. I would not need to miss a chance to journey Palantir’s rally.
Disclaimer: This weblog is for instructional functions solely and shouldn’t be construed as monetary recommendation. The concepts and techniques ought to by no means be used with out first assessing your personal private and monetary scenario, or with out consulting a monetary skilled.
Jayanthi Gopalakrishnan is Director of Website Content material at StockCharts.com. She spends her time developing with content material methods, delivering content material to coach merchants and traders, and discovering methods to make technical evaluation enjoyable. Jayanthi was Managing Editor at T3 Customized, a content material advertising company for monetary manufacturers. Previous to that, she was Managing Editor of Technical Evaluation of Shares & Commodities journal for 15+ years.
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