Palantir Technologies Stock Price and Forecast: Rallies to three-month highs above $26.50

• Palantir shares end Thursday with modest gains amid an upbeat market's mood.
• PLTR had accelerated on Wednesday as Fed puts risk back on.
• Palantir is due to be added to the Russell 3000 index on Monday.

Update June 25: Palantir Technologies Inc (NYSE: PLTR) extended this week’s rally and reached the highest levels in three months at $26.70 before retreating to finish at $26.53, still up 1% on the day. The surge comes on the back of a new partnership announced between DataRobot and Palantir Technologies Inc., designed to create unique, agile, and real-time solutions to help solve the most pressing demand forecasting problems. Technically, also the outlook for the software provider appears constructive in the near term.

Palantir shares remain on track to test higher levels as Wednesday sees a powerful acceleration of the bullish trend, which has been in place since the lows of $17.06 in the middle of May. Palantir has been relatively consistent in new customer announcements, and recent news of the Federal Aviation Authority (FAA) selecting Palantir for a contract further adds to a growing list of impressive government and public customers. The Centre for Disease Control (CDC) recently announced it has renewed its partnership with Palantir in relation to disease monitoring and outbreak control. This is very timely given the pandemic times we live in. Palantir shares are also due to be added to the Russell 3000 index, effective from June 28. So the close on Friday is where the benchmarking will be from and may see a heavy volume day.

Palantir (PLTR) statistics

PLTR stock forecast

Wednesday's move has seen a continuation of the strong trend in place since the earnings release on May 11. From just around $18, PLTR stock has traded in a strong trend to its current level of $26. Still a long way short of the January fizz high of $45. Technically, the move has been steadily guided higher by the 9-day moving average, and as long as the shares remain above this level, the trend and risk-reward remain skewed to further upside. The next resistance is $27.47 from March 15. Breaking this level is where things can get interesting. The volume profile on the right of the chart shows just how much volume thins out as PLTR shares get above $28. Above $30, volume shrinks to almost nothing as this corresponds with the gap on the price chart. This gap was caused by earnings on February 16. 

The risk-reward as mentioned remains skewed to the upside, but the Relative Strength Index (RSI) needs to be watched as it is close to overbought levels. Some period of price consolidation would bring this back to neutral levels. Look to the Moving Average Convergence Divergence (MACD) to break out of the long-term downtrend to confirm a further move higher in PLTR stock price. 

Previous update

Morning Update June 24: Palantir shares are little changed in early trading on Thursday as the stock stabilizes after recent gains. The bullish setup remains though as Thursday's candle has already surpassed yesterday's highs. Thursday's candle will be a continuation formation unless it breaks yesterday's low. At the time of writing PLTR shares are trading at $26.29 for a small gain of 0.08%.