- Palantir shares are ready for more gains after breaking out.
- PLTR stock flag flies bullish after a 2% gain.
- $26 is the level to hold as more bulls enter.
Palantir stock is readying itself nicely for more gains after a solid day on Tuesday. The stock added to recent momentum with a 2% gain to close out at $26.34. This is importantly the first time Palantir has closed above $26 since the breakout move on August 12. The breakout was due to the strong earnings number produced by Palantir on that day. Earnings beat on both EPS and revenue and Palantir spoke bullishly about customer wins and revenue generation going forward.
PLTR stock really jumped on the doubling of free cash flow forecasts from $150 million to $300 million. The breakout was technically a strong move and once $23.49 was broken the volume profile – or the lack of it – allowed the move to surge higher. We then put in a bullish continuation flag with $26 being the top of that flag. That is why it is a key resistance level and, again, the volume profile dictates its importance with little volume above here to provide resistance until the PLTR stock price gets into the low $30s. The overall market remains strong and Palantir has shrugged off some potentially bad news from a report regarding a software glitch.
The New York Post carried an exclusive report last week stating that "a computer glitch in a secretive software program used by the FBI allowed some unauthorized employees to access private data for more than a year, prosecutors revealed in a new court filing." A Palantir spokesperson responded by saying “there was no glitch in the software" and that the company's platform "has robust access and security controls. The customer also has rigorous protocols established to protect search warrant returns, which, in this case, the end-user did not follow”.
That appeared to be that and bulls rushed back to the stock.
Palantir key statistics
Market Cap | $50.3 billion |
Enterprise Value | $47.8 billion |
Price/Earnings (P/E) | 135 |
Price/Book |
28 |
Price/Sales | 40 |
Gross Margin | 0.7 |
Net Margin | -0.95 |
EBITDA TTM | -$1.24 billion TTM |
52-week low | $8.90 |
52-week high | $45 |
Average Wall Street rating and price target |
HOLD $24.61 |
PLTR stock forecast
Firstly, sentiment is improving toward the stock with social media mentions increasing and showing a nice correlation with the stock price recently. Palantir is a hybrid stock in that it has characteristics of a meme stock with a strong retail following but it also has a strong following on Wall Street with Cathy Wood's ARK funds a regular buyer. As we can see below from Refinitiv, Social media volume peaked on August 25, the day of the New York Post article. The correlation between social media sentiment and the PLTR stock price is currently running quite high so the trend should continue.
Returning to the chart, it is noticeable the gap in volume once PLTR got above $23.49 and again how volume drops off once we get through $26. The flag formation is also highlighted, and it does look like a two-year-old drew on my chart but no, that's me! Ignoring my failure in art in high school, the breakout of the flag is now clear with $26 the last resistance to clear. Key suports are the 9-day moving average at $25.20 and the breakout level at $23.49.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD struggles near multi-month low; looks to US CPI for fresh impetus
AUD/USD languishes near a multi-month low during the Asian session on Wednesday and seems vulnerable amid a bullish USD. Expectations that inflationary import tariffs from US President-elect Donald Trump will push up prices and limit the scope for the Fed to cut rates remain supportive of elevated US bond yields.
USD/JPY sits near its highest level since July, close to 155.00 as traders await US CPI
USD/JPY stands firm near its highest level since July 30 amid speculations that a fragile minority government in Japan will make it difficult for the BoJ to tighten its monetary policy further. Moreover, fears that US President-elect Donald Trump might again hit Japan with protectionist trade measures continue to undermine the JPY.
Gold price oscillates around $2,600, just above a nearly two-month low ahead of US inflation
Gold price consolidates its recent heavy losses to the lowest level since September 20 as bears opt to pause for a breather ahead of the crucial US CPI report, which will influence Fed rate-cut expectations and provide a fresh impetus.
Ripple could rally 50% following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. XRP could rally nearly 50% if it sustains a firm close above the neckline resistance of an inverted head and shoulders pattern.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.