New Price Target for Palantir After All-Time High Projection
As Palantir stock reaches yet another all-time high, it it time to buy?
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Have you ever bought a stock as it reached an all-time high?
It’s a scary thought. We've always been taught to buy low and sell high. Buying at the highs is a violation of that rule.
Nobody likes to buy at the highs, because of the fear that the stock will immediately decline. Traders and investors fear buying the top, just as they fear selling the bottom.
When Does Buying High Make Sense?
Why does a stock reach an all-time high, and what does it tell us? Both fundamental and technical traders have logical reasons for buying at the highs.
Fundamental investors who buy at the highs perceive value that is greater than the stock’s current price. Technical traders love to buy stocks that are "breaking out" to all-time highs, because it represents a show of strength.
Sometimes, these fundamental and technical qualities appear simultaneously. That's been the case with Palantir PLTR.
Buying Palantir At The Highs
Back in October 2024, I recommended buying Palantir even as the stock traded at an all-time high. Since then, shares of the data analytics company have tripled in value.
On Monday, the stock closed at yet another all-time high. According to the charts, Palantir’s wild ride could just be getting started.
Over the past four months, Palantir has formed a cup and handle pattern (shaded yellow). That bullish formation projects the stock to the $160 area, making that figure my new price target for Palantir.
Palantir is trading above its 50-day (blue) and 200-day (red) moving averages. Both of those moving averages are rising, a sign of strength. Shares of the Denver, Colorado-based software company have gained 75.6% year-to-date.
The Palantir Revolution
When Palantir reported earnings last month, the company exceeded Wall Street’s expectations by a narrow margin. Palantir also raised full-year guidance for revenue. CEO Alex Karp stated that Palantir’s performance was indicative of “a revolution sweeping across our business and industry.”
By the way, kudos to my associate Sarge. If I recall correctly, Sarge bought Palantir when it was still trading in single digits. Not many traders will top that buy.
I finally understood the Palantir story months later. Even at a higher price, the stock was still a buy.
Now the stock has reached yet another all-time high. If the charts are correct, Palantir is still a good stock to own at its current price.
At the time of publication, Ponsi was long PLTR.
