Donald Trump has been elected the 47th President of the United States, marking a pivotal moment in American politics. His victory has sent ripples through financial markets, with stocks like Palantir surging amid investor expectations of policy shifts. In this week alone, Palantir (PLTR) stock has surged by over 35%, setting a new all-time high (ATH).
Palantir (PLTR) Stock Has Nearly Tripled In Price Since Summer
Since the May low, Palantir (PLTR) has experienced an impressive rally, nearly tripling in price, surging from $20 to $55.5. In doing so, the stock decisively broke through the key resistance zone between $35.2 and $45, establishing a new all-time high (ATH) at $55.7 and flipping that previous resistance into a robust support area.
From a technical perspective, the MACD histogram continues to exhibit a strong uptrend, while the MACD lines remain bullishly crossed, signaling sustained upward momentum. However, the RSI has entered overbought territory, though no clear bearish divergences have emerged yet, suggesting the bullish trend could still have room to run. As long as price action holds above the new support zone, Palantir may continue its upward trajectory.
Palantir (PLTR) Stock Eyes 26% Upside Potential
After an impressive surge of nearly 36% this week, Palantir’s technical outlook continues to strengthen. The stock has reversed a previously bearish MACD histogram, which has now ticked bullishly, while the MACD lines have crossed bullishly. The EMAs also confirm the upward momentum, forming a bullish golden crossover that signals a strong mid-term trend.
In addition, the RSI recently corrected from overbought levels but has since bounced off the overbought line, indicating a potential continuation of the bullish momentum. With these indicators aligning positively, Palantir could now target the 1.618 Fibonacci projection level at $69.4, which serves as the next key resistance point. This projection suggests an upside potential of approximately 26%, presenting a compelling opportunity for further gains.
Palantir’s Downside Potential: Key Support Levels to Watch
In the event of a sharp and unexpected correction, Palantir (PLTR) has significant Fibonacci support levels at $36.7 and $24.9. These levels will be critical in maintaining the stock’s bullish momentum, and as long as Palantir stays above them, the overall outlook remains positive.
From a technical standpoint, the indicators in the daily chart continue to project strength. The EMAs have formed a Golden Crossover, affirming the bullish trend in the short- to medium-term. Additionally, the MACD lines are crossed bullishly, while the MACD histogram shows a persistent uptrend. Although the RSI has entered overbought territory, there are no immediate bearish signals, suggesting that any correction could be a healthy pullback within the broader uptrend. If Palantir maintains these support levels, it remains well-positioned for further gains.
Palantir continues to secure major contracts with both the U.S. government and international organizations, particularly in defense, intelligence, and national security. Its software is being increasingly integrated into critical government operations, solidifying its role as a key player in the public sector. Moreover, Palantir reported its first full year of profitability at the beginning of this year, which has been a significant milestone for the company. This shift to profitability has been a critical driver behind the stock’s recent rally, attracting institutional investors looking for sustainable growth. These factors, combined with its role in critical infrastructure and innovation, position Palantir as a strong contender in the tech space as of late 2024.
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