Can Palantir Go Above $27 Before 21 June 2024?
$Palantir (PLTR.US)$ became eligible for S&P 500 inclusion following its third-quarter 2023 earnings report.
Palantir has yet to be chosen for the index, but this upcoming cycle could be a potential time that it will be chosen. The S&P 500 index is rebalanced once per quarter, and the next rebalancing is set to occur on 21 June.
We have seen how Palantir stock have been trading rather volatile over the recent weeks, despite some of the new contracts win and also investment by Ark Invest. The stock price did not make any significant upside.
So in this article I want to examine how Palantir could be trading in June, as today (31 May) mark the last trading day of May 2024.
Palantir Trading Near 50-day period. But Not Good Enough
As we can see from the chart below, Palantir is trading slightly below the 50-day period, but that is not good enough as it has been trading below the 50-day period for most of trading sessions in May 2024.
There have been quite a good increase in 30 May trading but can we see Palantir ending May trading session at least above the 50-day MA period.
If we looked at the RSI divergence, an RSI divergence occurs when price moves in the opposite direction of the RSI. In other words, a chart might display a change in momentum before a corresponding change in price. A bullish divergence occurs when the RSI displays an oversold reading followed by a higher low that appears with lower lows in the price.
Look like Palantir is set for a bullish divergence as we can see that RSI displays an oversold and we have a higher low with the most recent price.
Palantir Selling Pressure Continue Despite Recent Stock Price Slight Increase
If we look at how Palantir have fared in its recent trading, we will discover that Palantir is still experiencing selling since last week of April, so most of May, Palantir have been experiencing selling.
For the MACD, we will need to see a more confirmed signal that we could be having a potential upside as we move into June 2024, but we need to see demand (buying) to come back for Palantir.
Potential BUY signal Forming Using KDJ
By using KDJ, I am beginning to see a potential BUY signal formed up for Palantir, but as mentioned in previous section, we need to see demand (buying) to come back for Palantir.
I have also tried to plot the supertrend targets, there is a possible of Palantir dropping to around $18 dollar, but if hopes of Palantir entering S&P 500 is held high, I do not see why Palantir cannot go above $27.
Summary
With the AI stocks making their earnings report and we saw some winners and losers, Palantir is still very much a stock that we could see in the running for the AI software race.
I am expecting Palantir to have a better upside trading come June 2024, this might be a good time to buy as the current price looks reasonable.
Appreciate if you could share your thoughts in the comment section whether you think Palantir would be able to clear $27 as we get closer to the S&P 500 rebalancing date on 21 June 2024?
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Detached House : I still think the chance of admission is slim Bro. Sometimes, they deliberately wait for the companies to generate more quarters of profits first, to be sure.
Detached House : Well written Bro!
nerdbull1669 OP Detached House : I think you got a point there, but if you looked at how they rebalanced the S&P 500, they are seeking the weightage, we shall see what happen next, just hope that PLTR get into S&P 500.
Master Corgi : 24 more realistic
Kevin Matte : I see it around between $24,75 - 25,50 ! Hopefully mooore ^^
sTone83 : If the new trend starts, it will roughly go to the $33-35 position... until then, it has to prove that it's already starting