Palantir Technologies Stock Price and Forecast: PLTR bounces on a down day for stocks

Palantir stock closes higher on a negative day for equities.
Meme stocks suffer steep falls on Tuesday.
PLTR is now stuck in a neutral range.

Ivan Brian FXStreet

Palantir stock surprised markets on Tuesday by closing higher, when many retail names were suffering heavy losses. Palantir has a strong retail following but also a strong institutional interest, so it manages to straddle both meme stock and mainline sectors.

Palantir did not see much activity on Tuesday after a very solid opening when the stock was up 1% straight from the opening bell. It then traded sideways for the remainder of the session in light volume. The stock was on the wires due to its BlackSky partnership but in our view, this was not a catalyst to the gains seen from the open. It may have been option related due to quadruple witching (see here) but the move on the open did not see much follow-through.

Jefferies did increase their price target slightly for the stock on Tuesday but from $30 to $31 so, again, not significant.

Palantir key statistics

Market Cap	$50.4 billion
Enterprise Value	$47.8 billion
Price/Earnings (P/E)	135
Price/Book	28
Price/Sales	40
Gross Margin	0.7
Net Margin	-0.95
EBITDA TTM	-$1.24 billion TTM
52-week low	$8.90
52-week high	$45
Short Interest	3.1%
Average Wall Street rating and price target	HOLD $24.61

Palantir stock forecast

Palantir had been trending nicely following a strong earnings breakout. Following this, the stock put in a continuation flag pattern and broke out of this in early September.

This had appeared to set the stock up for more gains with a push to fill the gap from February at $31.34. This was an earnings gap. Along the way the resistance at $27.49 needed to be broken to attract more momentum into PLTR stock. But the longer a stock takes to consolidate, then the weaker the trend becomes, and this is what happened here.

PLTR could not even test $27.49 and lost momentum and interest from bulls. Some profit-taking then hit the stock as equity markets started to turn negative. The stock is just currently holding the top of the flag pattern at $26, but this does not return it to a bullish trend in our view.

Palantir really needs to break $27.49 to turn bullish. Breaking $27 along the way will help, as volume thins out and that should lead to a swift break of $27.49. The Moving Average Convergence DIvergence indicator remains crossed into bearish territory, so this would need resolving before the stock turns bullish.

FXStreet View: PLTR neutral from $27 to $23, bearish below $23, bullish above $27.

FXStreet levels: Buy the dip at $25 with a stop at $24. The zone from $25 to $23 is strong support, so can be used to buy dips – just please use a stop.

PLTR daily chart

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD holds above 1.3350 with the 200-day SMA capping gains

The British Pound appreciates against the US Dollar on Tuesday to trim previous losses and return to the 1.3375 area, aiming to retest resistance at the key 200-day Simple Moving Average. This is a popular indicator, which lies a few pips below 1.3400 and has been capping Pound’s recovery over the last two weeks.

EUR/USD pops to weekly highs near 1.1460 on US CPI

EUR/USD regains traction and climbs further, revisiting the 1.1460 region on Tuesday. The pair’s marked uptick comes as the US Dollar continues to lose momentum across the board, particularly after US CPI data came below estimates in June.

Gold picks up pace, targets $4,100

Gold reverses the recent weakness and reclaims the area beyond the key $4,000 mark per troy ounce on Tuesday. The precious metal’s recovery picks up pace and approaches the $4,100 region in the wake of the release of lower-than-expected US inflation figures in June.

Crypto Today: Bitcoin, Ethereum, XRP extend sideways trading amid ETF outflows, US-Iran war escalation

Bitcoin hovers around $62,500 amid prevalent sideways trading. Meanwhile, major altcoins such as Ethereum and Ripple are holding above crucial support levels at $1,700 and $1.05, respectively, reflecting ongoing consolidation across the crypto sector.

Fed Chair Warsh to note they have no tolerance for persistently elevated inflation

According to the prepared remarks that Fed Chairman Kevin Warsh will deliver during his testimony on the Semiannual Monetary Policy Report before the US House Financial Services Committee, he will note that the Fed has no tolerance for persistently elevated inflation.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.