- Palantir stock gets ready to break higher again, this time to $30.
- PLTR shares have been strong since the earnings release on August 12.
- Palantir is a favourite stock of ARK Invest and Cathy Wood.
Palantir shares took it pretty easy on Wednesday, but that is fine given the recent strength. The period of consolidation though may be coming to an end after a strong surge from the earnings release. Then a little wobble and retracement followed, as a newspaper report caused some concern, but the stock could not be knocked back enough to wake bears and the retracement only saw more bulls take advantage of the dip. Certainly Cathy Wood was one of those as her ARK funds have been recently adding after the results.
From a technical perspective, the stock has consolidated after a strong earnings surge, usually a bullish sign and one of our favourite technical setups here at FXStreet. The retracement to test the breakout level only adding to the psychology of the bullish move. Buyers push the stock higher after results, but then the stock stalls and sellers sense an opportunity. The stock falls back, but buyers once again defend the breakout level, adding to its strength and putting bears and sellers on notice. In the case of PLTR, that breakout level after earnings was $23.49.
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 |
Palantir stock forecast
As described above, the surge after earnings then led to the perfect bullish continuation consolidation. This has resulted in a flag formation. A breakout of the flag formation should see further gains up to $30. The first resistance is the high from late June at $27.49. Once that goes, $30 should be an easy target as volume drops off significantly. $30 is an obvious round number target. $4 was the entry length of the flag, so a $4 move from the breakout brings PLTR to $30. However, there is a gap to $31.34 from the earnings release back in February that would make a neat gap fill move.
To keep the bullish trend intact, PLTR needs to hold $26. Breaking lower puts the move into more neutral territory, and breaking the $23.49 breakout level ends the bullish trend completely.
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