To The Moon

During their recent earnings report, $Palantir Technologies Inc.(PLTR)$  has exceeded on both revenue and earnings per share (EPS) for the fourth quarter. Their stock went up more than 21% on Tuesday (14 Feb).

They are a big data analytics company which has many government projects, but recently their total U.S. commercial customers is up 79% YOY.

I would like to put Palantir (PLTR) into my portfolio, but I do ask myself, will this stock go up another 30% or more. I would set the target price to exit to be $12 and beyond. I will try to look at the different areas and see if Palantir (PLTR) would be a good buy for mid-term or long term.

Current Trading above 200MA

It is trading above 200MA after it announced its earnings, now the question is whether it can go higher. What factors would bring it to trade near its 52-week high of $14.86.

Do remember that they have an all-time high of $39 per share in January 2021.

What cause the share to be at $39

$Palantir Technologies Inc.(PLTR)$’s good reputation and robust revenue growth contribute to the share price to go to $39.

They are a data analytics company. This could be a good period where A.I. is being looked into by companies, demand for data analytics would rise, and Palantir (PLTR) has been focusing on commercial customer acquisition, and they have done well upon reporting up 79% YOY.

Hypergrowth coming soon?

One concern might hinder the acquisition of commercial customers, the price of Foundry, which serves commercial customers. Unless there are partnership between large corporation and small-medium companies, to utilize it. It will be quite costly to run the project.

Quote what their CEO says “Our basic view of Palantir is we are in this to make institutions of the West stronger. We believe we’re winning. Because we’re winning, I think there’s going to be a lot of interest in us in buying our software and potentially in buying us.”

With good optimistic potential from their CEO say, it look like they have plans coming up on how to make hypergrowth appear again. We will monitor and see how the company decide to move.

We will see if the stock price maintain to be trading above the 200MA for the next 5 trading days.

When will be a good time to enter?

Looking at how the stock price is trading above 200MA, and the current VWAP is at $8.76(Daily), $8.54(Weekly). I will use it as a guide to check my prediction for this stock.

I would expect the price to be trading above the 200MA for quite some time.

Predicted Signal, Support and Resistance

My model predicted $Palantir Technologies Inc.(PLTR)$ to be a STRONG BUY signal, with resistance at $9.32. It last close yesterday(14 Feb) at $9.22(After-hours: $9.20).

I would watch its price movement during pre-market today, will enter just below $9.30. From the 5 mins chart below, it starts to trade above VWAP around 12.20pm, but BUY volume is not high, this is why the price did not increase too much till the end of session. I would look out for more BUY volume during the early 30mins to 1 hour of trading today (15 Feb).

Sentiment Analysis Scoring

Now let me check out the sentiment analysis scoring for Palantir (PLTR). From 02 Feb till date, the sentiment scoring is on the positive zone. 3 days of high scores.

I hope that investors confidence for Palantir is back and will increase their chances of a hypergrowth, hence, seeing them to break their 52-week high of $39.

Summary

I would pick up this stock as part of my portfolio. Like I mentioned earlier, I would place my entry target price at around $9.30. The period I will hold will be mid-term to long term.

I see potential in this company as their data analytics solutions have been used and tested by many companies.

@TigerStars appreciate your support

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Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Technical Analysis, and there are many other indicators that need to be look at together. (e.g., Price Action).