New Price Targets for Palantir, Rocket Lab and SoFi After Buying at a Discount
Setting new price targets on three highly-compelling names as the stock market faces a correction.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
As readers well know, I was out last week. I did let my followers on X, or Twitter, know that I was adding to some of my favorite names on weakness.
That's exactly what I did, picking up some Palantir Technologies PLTR with a $75 handle. That stock is now trading with an $87 handle. I also picked up some Rocket Lab USA RKLB with a $16 handle. That stock just crossed the tape with a $19 handle. Additionally, I grabbed some shares of SoFi Technologies SOFI in the low $11s. That stock is now trading above $12.
This is not to brag. No, it most certainly is not. I have large, long positions in all three. I made some sales in all three when they were still much closer to their highs. That said, all three have had their tails handed to them since those heady days. After adding to all three not just at last week's deeply-discounted prices, but also above those prices on the way down, my long positions have grown in terms of share count and in terms of weighting. This calls for an exercise in risk management.
Risk Management
Common sense tells us to take something off the top when having just added at lower prices during a sell-off. That's called "trading around" a core position.
Understand that, while this protects and even "grows" one's pile, if one records their trades on a "first in, first out" or FIFO basis as I do, that this will do a hit job on one's net basis. The PLTR trade won't be a $10 gain, it might be a $70 gain, if you know what I mean. If you want to avoid that for tax purposes or any other reason, be sure to record these trades in LIFO (last in, first out) fashion. The net dollar value of your portfolio and daily P/L should not be impacted.
Palantir Technologies (PLTR)
I removed the less-than-fully-developed head-and-shoulders pattern from my PLTR chart. Here we see that as the firm went into its AIPCon 6 show and announced a plethora of new deals, that trendline support for the stock held. The shares now appear to be attempting to put together a cup pattern as the battle is joined with both the stock's 21-day EMA and 50-day SMA. Taking and holding these lines would not only push the cup pattern scenario but bring on increased participation by portfolio managers and swing traders alike. The 50-day SMA is our new pivot.
Target Price: $110 (down from $115)
Pivot: 50-day SMA (currently $87.50)
Add: Down to $63 (January low)
Panic: Loss of 200-day SMA.
Rocket Lab USA (RKLB)
Readers will see here that RKLB sold off after the pennant formation closed in February. We had warned of the coming volatility. We were unsure of direction. Here, we also see the development of a potential cup pattern or maybe even a mini double-bottom pattern of reversal. Both are bullish. The stock is also closing in on its 21-day EMA from below that would bring on the swing crowd.
Target Price: $31 (down from $33)
Pivot: $25 (50-day SMA)
Add: Down to the 200-day SMA ($14.30)
Panic: Loss of 200-day SMA
SoFi Technologies (SOFI)
We see something similar going on here as well. Only here, we already have confirmed support at the 200-day SMA. The daily MACD below the chart shows, that while still postured bearishly, the 12-day SMA looks ready to potentially cross above the 26-day EMA, which would be positive.
Target Price: $18.50 (down from $20)
Pivot: 50-day SMA (currently $14.80)
Add: Down to the 200-day SMA (currently $10.90)
Panic: Loss of 200-day SMA.
At the time of publication, Guifoyle was long PLTR, RKLB and SOFI equity.
