New Palantir Price Target, SoFi Update After Boost
We're providing updates on three positions after the week starts off with a market jolt.
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Just a quick update on three "Stocks Under $10" names that I maintain long positions in that have wobbled of late. I still see all three technical setups as current and with a little early morning boost on Monday, all appear to be back on track.
Palantir Technologies
More than a month ago, I gave readers the February high of $125 as a pivot for Palantir Technologies PLTR as the stock broke out from a double-bottom pattern of bullish reversal. With that piece came a reiteration of my $153 target price. Readers will now see that the double bottom has developed into a full-blown cup-with-handle pattern, which is also bullish.
The stock is methodically working its way higher coming out of that pattern, while relative strength remains strong. The daily MACD looks to actually strengthen here as the histogram of the nine-day EMA appears likely to move back above the zero-bound and a bullish crossover by the 12-day EMA of the 26-day EMA seems imminent.
Palantir Technologies (PLTR)
Target price: $156 (up from $153)
Pivot: $125 (right side apex of cup)
Add: From the 21-day EMA down to 50-day SMA ($127 down to $114)
Panic: Loss of 200-day SMA (currently $78.50)
SoFi Technologies
Almost two weeks ago, I increased my target price for SoFi Technologies SOFI based on the morphing of what looked like a double-bottom pattern of reversal in early May, into an inverted head-and-shoulders pattern, which is also bullish. The stock sold off a little late last week but appears to have found support at its 21-day EMA.
Relative strength had softened but remained better than neutral and will likely rebound on Monday morning. The daily MACD remains bullishly postured though that posture had come under pressure last Thursday and Friday. I look for some relief here on Monday morning. I find it interesting that the 50-day and 200-day SMAs are running together for almost a month. The implication there would be that there could be tremendous algorithmic support at that level.
SoFi Technologies (SOFI)
Target price: $19.25 (reiteration)
Pivot: $14.80 (reiteration)
Add: Down to the 200-day SMA (currently $12.70)
Panic: Loss of contact with the 200-day SMA
Peloton Interactive
This one is a little trickier than the other two. Two weeks ago, I increased my target price for Peloton PTON as the stock came out of an inverted head-and-shoulders pattern. The stock has struggled for almost a week now and is barely hanging onto its 200-day SMA, which is running alongside the stock's 21-day EMA. Losing contact with these two lines could cost PTON not only some long side professional exposure, but also the swing crowd. That group had been part of what drove the stock higher coming off of its April lows. For now, we are not taking action, but the stock does have to defend itself here.
Peloton Interactive (PTON)
Target price: $9.50 (reiteration)
Pivot: $7.90 (neckline of pattern)
Take Something Off: Loss of the 200-day SMA
Add Back On: At the 50-day SMA
Panic: Loss of 50-day SMA
At the time of publication, Guilfoyle was long PLTR, SOFI and PTON equity.
