New Palantir Price Target as Stock Strength Grows
We're upping our price target for the AI darling as the charts continue to send bullish signals.
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The technical case for Palantir has improved.
Again? Yes, again.
There has been no major news released concerning Sarge-folio holding and "Stocks Under $10" core name Palantir Technologies (PLTR) this week. Yet the song just keeps getting sweeter and, speaking just for me, I am happy to hum along.
Little more than two weeks ago, I wrote to you (ahead of the open on December 10) to inform readers that what was then our pivot in that stock, the 50-day SMA, had been triggered.
The stock had closed at $181.84 on December 9. The last sale that I saw on Friday morning was $194.60. That's a 7% run in half of one month. This time frame also included a little bit of a post-December 10 swoon, but that played precisely into our hands. By "our," I mean the long PLTR crowd.
You Saw This
This is the chart that I showed you on that Wednesday morning:
The stock had recovered from a post-rising wedge pattern sell-off and had retaken that 50-day SMA, pulling unengaged professional money back into the game. The indicators that we most often use were starting to improve as well. That morning, we reiterated our $215 target price.
Now, see this:
The shares of Palantir Technologies have now developed a cup-with-handle pattern of bullish continuance with a $190 pivot. As the pivot we are using rises, you know, so must our target price. The stock has also experienced a recent swing traders' golden cross (21-day ENA crossing over the 50-day EMA), which is a bullish signal, as that swing crowd has pulled the 21-day EMA away from that blue line.
Moving on to the indicators that I most often use, relative strength has improved but still lies well below entering into a technically overbought state. On top of that, looking at the daily MACD below the chart, the histogram of the nine-day EMA is now in positive territory (nearly all month) as are both the 12-day EMA and 26-day EMA, with the 12-day EMA running above the 26-day EMA. This is about the most bullish all-encompassing signal that a MACD can really send.
Target Price: $238 (up from $215)
Pivot: $190 (up from $179)
Add: Down to 50-day SMA (currently $181)
Panic: Loss of the 200-day SMA
At the time of publication, Guilfoyle was long PLTR equity.
