Palantir Technical Analysis: Bulls on the Offensive!

Palantir Technologies’ (NYSE:PLTR) investors can breathe a sigh of relief. The company posted strong results in Q2 2024. With that in the rearview mirror, it’s a great time to apply Palantir technical analysis and see what the charts are telling us. Overall, it looks like buyers of Palantir stock are on the winning side of the deal.

To recap, Palantir Technologies is a well-known provider of security products and services. The company generated Q2-2024 revenue of $678 million and earnings of 9 cents per share, beating analysts’ consensus call for revenue of $653 million and earnings of 8 cents per share.

Therefore, there is no need to worry about an earnings disaster at this point. Now, we can check the charts and look for trends that indicate the possible future trajectory of Palantir stock.

Palantir Stock: Bought, but not overbought

Sometimes the Palantir Technologies bulls are in control; other times, the bears are in the driver’s seat. This can be confusing and frustrating, but technical indicators like the Relative Strength Index or RSI can help us see the big picture.

This daily candlestick chart of Palantir stock has the RSI indicator at the bottom. It is a trend/direction indicator and the blue RSI line is pointing up. This is a sign that buyers have regained control of price action.

At the same time, the RSI did not cross 70, which would indicate that the stock is overbought and vulnerable to a pullback. As of this writing, the RSI for Palantir stock is around 57, so there is still room for the bulls to run.

Be sure to watch the RSI indicator in the coming days. After all, you won’t want to hold any stock position in overbought territory for too long.

That’s a nice jump!

Moving averages can also help assess whether a stock is in real trouble or not. There is a moving average that I like to call the “line in the sand”. Go under and trouble can arise.

For me, the “line in the sand” that separates problems from non-problems is the 200-day moving average. Here’s the daily candlestick chart of Palantir stock again, but with the 200-day moving average shown as a black line.

As you can see, PLTR recently came back right from the black line. It’s almost manual perfect!

This doesn’t mean Palantir stock is “out of the woods” so to speak, as it could still turn back and fall below its 200-day moving average. So, as always, staying informed and monitoring your charts will be crucial.

Palantir Technical Analysis: Buyers Can Win This Tug of War

Palantir Technologies released its long-awaited quarterly results and beat Wall Street expectations. Meanwhile, the lines on the charts suggest that PLTR stock buyers are in control, at least for now.

The bottom line is that it’s safe to buy Palantir stock now because you’ll be on the right side of the deal. Don’t get too complacent, though.

Check your charts every day and apply Palantir technical analysis indicators like RSI and 200-day moving average. Even if you like Palantir Technologies as a company, stay vigilant and be ready to bail because a good deal can always turn bad.

At the time of publication, David Moadel has not had (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.