Target Prices for Palantir, SoFi and Rocket Lab Amid Robust Rallies

On Monday, three of our core "Stocks Under $10" names swam upstream and rallied quite robustly despite the "down" tape. I have received a couple of emails asking if target prices had been pierced or breached on Monday. 

These targets are a matter of record here at TheStreet Pro. I will, however, briefly go over my current target prices for Rocket Lab RKLB, SoFi Technologies SOFI and Palantir Technologies PLTR just to get everyone who may have missed my most recent articles on each on each of these Sarge names (that we did indeed initiate at less than $10) back on the same page.

I realize that I write on these names often enough and that it's very possible to miss an article unintentionally. The short answer is that none of these names managed to actually hit a current target price on Monday, though two of them are getting close. Let's check it all out...

Rocket Lab (RKLB)

Shares of Rocket Lab soared 9.03% to $38.88 on Monday, creating all-time record high closing and intra-day highs for the stock. We took our target up to $42 from $39 in late June. Rocket Lab is sort of like Chevy to Cadillac when compared to SpaceX. The same Elon Musk story in regard to his taking his eyes off of his businesses in order to focus on politics that damaged Tesla TSLA shares on Monday probably also helped shares of Rocket Lab go higher. Looking at the options market for these shares on Monday, 162,000 contracts traded (well above normal) with a put/call ratio of just 0.34. ​

This is very similar to the chart that I showed readers on June 27. The stock continues to break out of the cup pattern that we recognized in May and then added a handle, which is a bullish signal. The stock retested its 21-day EMA with the development of that handle and passed that test with flying colors when suspected swing traders stepped up to the plate.

Relative strength remains quite robust and has now crossed into technically overbought territory. The daily MACD, which is below the chart, is still postured extremely bullishly with the histogram of the nine-day EMA still well above zero and the 12-day EMA still well above the 26-day EMA. Both of those lines also stand well above zero. This setup is still quite bullish.

Target Price: $42

Pivot Point: $33

Add: Down to the 50-day SMA 

Panic: Loss of the 200-day SMA

SoFi Technologies (SOFI)

On Monday, shares of SOFI popped for a gain of 3.61% to close at $19.24, setting nearly four-year highs. Here, too, we saw a below average put/call ratio of 0.36, but on more normal (for this name) options trading volume. On Tuesday morning, four-star rated (by TipRanks) analyst Terry Ma of Barclays, who has been wrong on SOFI literally all along, maintained an "equal weight" (hold-equivalent) rating on SOFI, but apparently felt forced to increase the firm's target price 50% all the way to $18 from $12. Ma allowed that credit card delinquency rates improved through May, which should help drive improvement in net charge-offs. ​

​The stock continues to break out of inverted head-and-shoulders pattern of bullish reversal. On July 1, I increased our target price to $20 from $19.25. The stock actually apexed at $19.29 on Monday. Should the share price hit target on Tuesday, we know what to do. We take some kind of action, such as selling a small portion, therefore not failing to take a predetermined profit and then we see if we should lean in or take our target for the balance higher.

Relative strength has now moved further into technically overbought territory, up from a neutral reading three weeks ago. The stock's daily MACD is now taken on an increasingly bullish posture. The histogram of the nine-day EMA now well above zero, with the 12-day EMA well above the 26-day EMA with both of those lines deep into positive territory.

Target Price: $20

Pivot: $15.40

Add: Down to the 50-day SMA 

Panic: Loss of the 200-day SMA

Note: This name is very close to seeing another increase made to its target price.

Palantir Technologies (PLTR)

Palantir Technologies, which is the granddaddy of "Stocks Under $10" victory stories, ran 3.54% on Monday to close at $139.12. This was not an all-time high and this is the one name among these three that is not currently threatening to take on my most recent target price. That said, the shares are up a rough 2,074% since initiation into the old SU$10 portfolio.

On June 24, I wrote a piece where I referred to PLTR as America's most important defense contractor, noting that it could benefit significantly as NATO expands defense spending and Europe has no internal competitors even close to being as capable as Palantir on driving big data and analytics-focused success in the provision of intelligence and ultimately setting the table for battlefield success. ​

I showed readers at that time this cup-and-handle pattern that morphed out of that double-bottom ​pattern, thus raising the pivot. Relative strength has come in a bit but remained stronger than "neutral." The daily MACD is no longer postured bullishly. The histogram of the nine-day EMA has fallen below zero while the 12-day EMA has dropped below the 26-day EMA, but with both still in positive territory.

This chart, which I also showed readers in June, now matters more than ever. By overlaying a Raff regression model on the chart above, we identify an upwards sloping trend that goes back to last summer. There have been few exceptions where breakouts to both the upside and downside were attempted and failed. Both the central trendline of the model and the 50-day SMA strand in the general vicinity of the last sale and could provide spots for increased institutional investment. Obviously, the loss of these lines would mean the opposite.

Target Price: $181

Pivot: $156

Add: Down to 50-day SMA 

Panic: Loss of 200-day SMA

At the time of publication, Guilfoyle was long RKLB, SOFI and PLTR equity.