Why Palantir Stock Looks Primed, Ready To Rip Any Day

Palantir Technologies Inc. PLTR shares were trading higher Tuesday after the stock was potentially being pushed by retail traders. The stock is one of the most popular in Reddit’s Wall Street Bets forum alongside other names such as AMC Entertainment Holdings AMC, and Gamestop Corp. GME.

Palantir was up 1.86% at $26.31 Tuesday afternoon. 

See Related: EXCLUSIVE: BlackSky CEO Talks Palantir Partnership, Real-Time Global Intelligence

Palantir Daily Chart Analysis

• The stock looks to have broken out of what technical traders call an ascending triangle pattern and now are testing the old resistance as a support level in a period of consolidation.
• The $25 price level is an area the stock struggled to cross above in the past. Now this price level is looking to hold as an area of support.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment..
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been trading sideways above the middle line and now sits at 59. This shows that in the last couple weeks, there has been more buying pressure than selling pressure in the stock.

What’s Next For Palantir?

Bullish traders are looking to see the stock stay above the $25 level and start creeping higher in time. This could signal the stock is ready to see its next leg up.

Bears are looking for the stock to be unable to hold above the $25 level and for it to start falling further. Bears would also like to see the stock fall below the old higher low trendline from the ascending triangle pattern.