New Palantir Price Target After $2 Billion Foreign Investment News
Re-taking the Wall Street high on the AI firm after a major develop from Europe.
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About two and half weeks ago, I drew up a new chart for Palantir Technologies PLTR and reiterated my then-Wall-Street-high $205 target price on the stock.
I believe that I am currently tied for the title of "Wall Street high" as my colleague here at TheStreet Pro, Chris Versace, increased his target to $205 on Friday morning. Versace mentioned in his piece about that raise a partnership in the U.K. that Palantir had entered into on Thursday that will result in an investment in that country of more than $2 billion.
Palantir will make its European headquarters in the U.K., and this will be the base for the firm's defense business in that region of the world. The British military will work with Palantir to co-develop AI-powered capabilities as the British military purchases more than $1 billion in software and services from the firm over the next five years.
Palantir's Chart Is Evolving
This is what I showed you two and half weeks ago:
Now, look at what's happened since then:
Since that earlier chart was drawn up, the stock has pulled away from the 50-day SMA after finding support there. Readers may recall that I had at that time mentioned a nine-day battle at that line. This forced institutional managers to increase exposure. In doing so, they took the stock back above its 21-day EMA. That got the swing crowd back onsides.
Above the chart, the reading for relative strength has gone from sub-neutral to quite robust, while the daily MACD has gone from bearish with two of three components in negative territory to aggressively bullish with all three components exactly where the bulls want to see them.
On top of all of that, the stock has built a cup pattern. Readers will recall that the pivot for a cup pattern remains the apex of the left side of the cup until a handle is added. Once a handle is added, the pivot moves to the right-side peak of the cup. What that means is that, right now, my $190 pivot stands as is. Should a handle develop, we'll have to move it and, at that time, create a new target.
However, I am going to double my expected percentage move off of pivot and very innocently one-up Versace by retaking my title as the Wall Street high (hi pal).
Palantir Technologies (PLTR)
Target Price: $218 (up from $205)
Pivot: $190 (reiteration, for now)
Add: Down to the 50-day SMA (currently $163)
Panic: Loss of the 200-day SMA (currently $116)
At the time of publication, Guilgoyle was long PLTR equity.
