- NYSE: PLTR has broken out of its range, hitting the highest since mid-March.
- Palantir Technologies benefits from ARK, Goldman Sachs' backing.
- Supporting COVID-19 efforts, low-interest rates and upbeat results are additional positive factors.
Update April 14: Palantir Technologies Inc (NYSE: PLTR) has kicked off Wednesday's trading session with a substantial move to the upside. Shares of the software firm are changing hands above $26, up some 2.50% at the time of writing. The move is a bullish extension of its big breakout on Tuesday and is also backed by fundamentals described below.
The frustration is over – Palantir Technologies (NYSE: PLTR) has surged by 8.91% on Tuesday, breaking out of the limited range it had been confined to. That band was not only narrow but also on low ground.
Price action in the past six months is showing the upward move is substantial, but shares of Alex Karp's firm face several technical hurdles. First, the mid-March closing peak of $26.79, then the mid-February high of $29, and finally, the early February swing peak of $38.17, which still remains distant.
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Support awaits at April's previous high of $24.04, followed by $22.90 and finally by the cycle low of $21.73.
The technical graph is showing that PLTR shares are finally recovering from the head-and-shoulders pattern seen early in the year – one that proved devastating.
What is behind the upswing?
PLTR Stock News
There are five bullish developments pushing Palantir Technologies higher.
1) ARK: Cathie Woods, a star money manager, is eyed for every move after her golden touch resulted in handsome profits for investors. Her accumulation of Palantir share is a bullish sign.
2) Goldman Sachs is bullish: This investment bank is controversial, but its opinions are closely watched and if it gives its blessing to a stock, money moves toward it. Riding on GS' wave may prove profitable.
3) NHS efforts: The company founded by Peter Thiel and Alex Karp is somewhat secretive due to its CIA contracts and other activities which have raised questions. However, its efforts to help Britain's National Health Service (NHS) to analyze COVID-19 data has helped improve its image.
4) Upbeat financial results: Palantir recently published financial results and they have left investors impressed. That is one of the reasons GS went bullish. Will the uptrend continue? Earnings season begins shortly, and things may keep on shining for the company.
5) Low interest rates: Tepid US inflation figures have been the most recent reason for shares to rally – and PLTR is rising with all the other boats. The Federal Reserve has no need to hike borrowing costs, nor slow down its bond-buying pace. As a "growth stock," Palantir may outpace the broader S&P 500 Index.
All in all, there are fundamental and technical reasons to see NYSE: PLTR continuing its uptrend.
More Palantir Technologies (PLTR) Stock Price and Forecast: Rally in action amid three factors
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