Palantir Applied sciences (PLTR) has sometimes appeared within the High 10 StockCharts Technical Rank (SCTR) Stories. Extra not too long ago, it has reached the highest 5, making it a inventory price analyzing.

Palantir is an information 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 latest 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 may be very clear. After breaking by way of all resistance ranges, the inventory worth is able to navigate uncharted territories. This makes it troublesome 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 by way of all resistance ranges and is now in uncharted territory. How a lot greater can it go?Chart supply: StockCharts.com. For instructional functions.

The every day chart (see under) reveals that the uptrend continues to be going robust.

FIGURE 3. PALANTIR STOCK’s UPWARD TREND. The SCTR rating has been above 80 for the reason that early phases of the uptrend within the inventory worth. The relative energy 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 energy index (RSI) is properly above the 70 stage, 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 happening 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 latest 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 troublesome to find out how deep a pullback could be. I’m at present utilizing the 15-day EMA as a possible help stage, though I might need to tighten it relying on how the inventory behaves within the subsequent few buying and selling periods.

There are indicators of a pullback surfacing. The crimson physique of the final candlestick bar is the primary since its final earnings report. Be aware 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 might not be deep sufficient to achieve the 15-day EMA. I’d shorten it to a 10-day or perhaps a 5-day EMA to make use of as a help stage.

I’d enter a protracted place when the value reverses on growing quantity and maintain it till momentum decreases sufficient to justify exiting it. I’d use a trailing cease to exit the place. Since PLTR is an AI-related inventory, I’d additionally monitor the efficiency of different AI shares. If curiosity tapers, I’d both keep away from including lengthy positions or, if I personal the inventory, promote no 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 considered one of my Dashboard panels to watch it repeatedly. I would not wish to miss a possibility to experience 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.