To The Moon

$Palantir Technologies Inc.(PLTR)$ have been going through a roller coaster since it was preparing to join the Nasdaq 100, and was down on Monday (16 Dec 2024).

The slip on Monday was due to holiday profit-taking after another counseled caution on chasing the hot AI stock according to one analyst. 4% was shed on Monday early session but recover later in the trading session.

Palantir eventually close at 75.75 after NASDAQ say it will be added to Nasdaq 100 before the market open on 23 December 2024.

Why I Hold Back Taking Some Profit On Palantir

I have been holding Palantir for almost 1 one year, and have previously bought and sold Palantir before. That was the time when the concern over its high valuation hit me.

So for now, I am expecting Palantir to go above the $80 price target though there might be a correction which would bring it down to around $69 price level, I will share more in later section.

Why We Should Not Chase Palantir Stock Gains

Palantir has soared more than 300% year to date. Palantir has been trading well above its 20-day and 50-day averages.

The RSI is nearing the overbought region, do note that the shares have outpaced the S&P 500 big time, this suggest high expectations, though we also acknowledge the strong, accelerating operating momentum.

And Palantir is trading more than 70% to 100% above their 200-day lines are often at risk of pulling back to consolidate those gains.

Palantir Face Correction As It Join The Broad Market Retreat

Palantir stock rallied early Wednesday (18 Dec), before turning red later in the session, as the AI powerhouse joined a broad market retreat.

Palantir fell for the third straight day, shedding 4% to close at 71.51. Palantir had been on a roll, emerging as a major AI stock, especially given its strong position in the defense industry.

There is a mention of Army has awarded Palantir a $401 million contract extension related to its AI-powered Army Vantage platform, making the total ceiling value reaching a possible $619 million.

Palantir also announced a partnership with Pray.com, which makes an app "for daily prayer and faith-based content," to "accelerate new product launches."

As we can Palantir is still trading above the 20-day and 50-day averages, and the RSI is still holding well.

Then we saw Palantir trying to trade higher on Thursday (19 Dec) after the selling off on Wednesday(18 Dec), but there is not much conviction and strength from the trading and price action.

We saw Palantir hitting a high of near 77 before coming down to near 70 at around 3am ET, I gather that this could be the trading pattern we might see over the next few weeks as Palantir tried to form a more confirmed price pattern.

Eventually Palantir managed to close with 3.78% higher at 74.21 at the end of Thursday session.

Palantir Next Price Target Above $80, But Possible Downside To $69 Due to PullBack

There is a possibility of a pullback if Palantir went to trade around the $72 dollars region, then we might see a sharp pullback down to $69, if the bear continue to push, the next level we might see could be $63.

On the bull side, if bull can continue to push Palantir above $76, then we might see $80 and above as we welcome 2025.

There should be some pullback after the Christmas holiday, as investors might take profits and this could cause some price movement volatility.

Summary

As I have hold Palantir for long term, I might consider taking some profit when we hit $80, and reposition myself for another entry if we ever hit $69.

The concerns of high valuation for Palantir still remains, but I am looking forward to the next quarter earnings when we should be able to see the gap closing up, as the amount of contracts and the deal value should significantly help Palantir to overcome this over valuation issues.

Appreciate if you could share your thoughts in the comment section whether you think Palantir have a chance to go beyond $80 with a pullback either before or after trying for this new price target.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.