Palantir Technologies Inc (PLTR) has been making headlines with its impressive stock performance. Since hitting a low of just under $6 in December 2022, the stock has skyrocketed by a staggering 400%. This surge has captured the attention of investors, who are now wondering if this upward trend is here to stay.
The stock’s journey has been marked by periods of consolidation, where prices level off after a rise. From July 2023 to February 2024, Palantir’s shares traded between $13 and $21. Another consolidation phase occurred from March 2024 to August 2024, with the stock fluctuating between $20 and $29. These periods highlight the market’s mixed sentiment and volatility as investors reassessed the company’s value.
One of the most significant hurdles for Palantir has been surpassing the $30 mark. This psychological barrier has proven difficult to overcome, with previous attempts leading to ‘fake breakouts’ – brief surges above $30 followed by a drop back down. However, in August 2024, the stock finally broke through the $30 level and has held above it. This could be a significant indicator of growing investor confidence and increased buying momentum. If Palantir can maintain its position above $30 and exhibit a pattern of higher highs and lows, it could signal a genuine upward trend. The next potential resistance target would be $40, followed by the major resistance level of $45, its all-time high reached in January 2021.
However, it’s crucial to remember that a reversal is always possible. Investors must closely monitor Palantir’s trajectory to determine whether this is a sustainable breakout or merely another temporary spike. The ability of the stock to stay above these key levels will be a strong indicator of its future direction and potential for continued growth. As of August 16th, the stock closed at $32.08, representing a 2.75% increase.
