To The Moon

Hi everyone. Today I’ll be covering one of the few Cathie Wood stocks with great long-term prospects:

Palantir Technologies Inc. (NYSE: PLTR)

PLTR’s setup is long-term bullish - notice how we’re forming a rounding bottom setup with 29.19 as a key pivot. Last week, we closed with a nasty looking inverted hammer candle on the weekly chart, albeit on low volume. Not all of such candles result in a reversal, and it does help that last week had relatively low volume given the Juneteenth holiday.

On the daily chart, I’m watching the 23.52 level very closely. A rejection and close below this level back in Nov’21 was what sparked a move down to historic lows, after serving as support on multiple occasions in the past. If PLTR is able to hold this level, it could invalidate the bearish hammer candle on the weekly chart.

Moreover, notice how PLTR is trading in an ascending channel with higher highs and higher lows. It broke out of its descending channel consolidation, which was the same technical breakout pattern it saw back in February this year. It is also forming a potential hidden bullish divergence, which can be seen both on the RSI and the Stochastic RSI indicator.

On the 4h chart, we can see the hidden bullish divergences more clearly.

So, what can we expect from PLTR moving forward?

If it can hold 23.52, then I am expecting it to move towards the 29.19 level, with possible extensions towards the only remaining upside gap at 30.44-31.34 as well as the 33.50 level, which was resistance it established back in 2021.

If it cannot hold 23.52, then it could fall back into the channel to retest the support trendline of the ascending channel. It could come back in to retest the marabozu low of 4th June at 21.04.

In my last newsletter on PLTR, I placed a SELL sentiment on it, as I had expected a pullback towards the bullish gap from February. However, it has since turned into a bullish island gap, and should signify strength for bulls as long as it holds. In light of the strong technical setup from current levels, I am upgrading PLTR back to a BUY.

Sentiment: BUY (Upgraded from SELL)

Summary (with Price Targets - NFA):

• If PLTR can hold 23.52, it should head towards the 29.19 level, with possible extensions towards the 30.44-31.34 gap as well as the 33.50 level

• However, if PLTR cannot hold 23.52, then it could go back below the channel to retest the marabozu low from 4th June at 21.04, with potential confluence at the support trendline of the ascending channel

All right, that’s all for this newsletter. Till next time!

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