Palantir Technologies (PLTR): Stock Price and Forecast: PLTR stock is ready for further gains

Update: Palantir stock remains bullish after the recent strong move on the back of a strong earnings report. The stock has found favour with Cathy Wood of ARK Invest with her funds adding shares in the stock over the last number of sessions, taking advantage of a market dip to add more. The fundamentals after earnings look solid and the chart also looks bullish. The breakout is past but the stock is condolidating at higher levels, always a bullish sign. 

Palantir stock continues to trade perfectly from the recent earnings-driven breakout. Nothing can go up forever and what we prefer to see are strong breakouts and then a period of consolidation where the stock can steady itself and investors get renewed energy for another push higher. Stocks that swing wildly have little long-term trend and or long-term value. While we dislike pointing it out, many of this year's meme stocks exhibit exactly those characteristics. Wild swings with little to no trend. It suits the new breed of trader looking for action but it makes making consistent long term gains that much more difficult. Here at FXStreet, we want our readers to have a long career in the trading/investing game. That is why we have educational pieces and try to guide new investors through the process. No one is a guru when it comes to trading, even the most famous and brilliant traders in history have had long losing periods. It is about managing your risk and putting the odds in your favour.

Palantir had grabbed the attention of r/wallstreetbets earlier this year and the stock soared to $45. It has since come back down to earth but the recent trend has been encouraging, meaning it is not just a mad meme stock. Recent results from Palantir were good, very good. Customer numbers continue to grow strongly, revenue generation is moving nicely and the outlook was upgraded by Palantir. Most notably, Palantir doubled its free cash flow forecast from $150 million to $300 million. Palantir stock surged over 11% when the results hit the tape, breaking out of our up channel and the resistance at $23.49. PLTR traded up to the point of control since launching on the stock market., The point of control is the price with the highest amount of volume, so it is an equilibrium point. This has meant that the ascent of PLTR has slowed but consolidation after such a breakout is generally the sign of a bullish trend forming with the stock preparing to continue higher. 

Palantir key statistics

Palantir stock forecast

Palantir stock rallied over 3% on Monday to close at $24.82. Importantly, the small pullback still held above the 9-day moving average, but PLTR is still in a high-traffic, high-volume zone, so breaking sharply higher is not going to be easy and requires some catalyst such as newsflow or a decent upgrade. Cathie Wood of ARK Invest clearly remains a supporter as her funds have bought Palantir for the fifth day in a row. ARK is buying the dip, the only show in town in 2021.

The $27.49 mark remains our key resistance and target. The volume profile or shelf is quite obvious above here, there is none basically. This usually should see the price break accelerate with little resistance. The Moving Average Convergence Divergence (MACD) has recently broken out of the long-term downtrend and the Relative Strength Index (RSI) is trending nicely higher. The $23.49 level remains the key support.

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