The rapid rise of Palantir Technologies’ (NASDAQ: PLTR) stock shows no signs of slowing down at the moment, as the equity has blasted through key technical and psychological levels amid persistent valuation concerns.
Thanks to the firm’s advances in artificial intelligence (AI) software and notable partnerships, PLTR is now trading at a new all-time high of $76, a spike of 13% on the weekly chart. In 2024, the equity has soared by a massive 360%.
Ahead of trading on December 9, PLTR’s stock looks to extend last week’s run, gaining 8% in the pre-market. This upside has seen Palantir breach the $80 resistance and notched a new record high at $82, at the time of publication.
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PLTR stock not stopping
A review of the stock’s weekly chart by charting platform TrendSpider depicted a parabolic run that saw the equity run ‘through all the stop signs.’
The rally was powered by breaching a ‘Golden Fibonacci Extension’ that points to a target zone well above $80, with $100 in sight.
Notably, the ‘Golden Parabolic Run’ indicates a sharp upward trajectory in stock price, driven by strong fundamentals, positive sentiment, and technical momentum.
At the same time, PLTR stock’s Relative Strength Index (RSI) is also in overbought territory, exceeding 86. While this signals a possible bullish continuation, it might lead to consolidation or a pullback. However, based on PLTR’s current pre-market trend, investors seem less bothered by these conditions.
With PLTR’s stock upside remaining red hot, pseudonymous trading expert Micro2Macr0 cautioned in a post on X on December 9 that the current technical setup is pointing to a possible reversal.
The analyst observed that Palantir has reached the 1.618 Fibonacci extension level, reflecting a remarkable 1,257% gain from prior lows. The chart expert also shared concerns that Palantir is extremely overbought, with the RSI reading nearing the 90 spot.
The 1.618 level often acts as a key resistance point, where selling pressure typically emerges. Combined with the unsustainable RSI levels, Micro2Macr0 warned that the rally may be nearing exhaustion, describing it as ‘gravity will eventually take effect.’
“Everything from a technical level screams this trade is over and that gravity will eventually take effect,” said the trader.
Palantir’s key fundamentals
Palantir found more upside after the company recorded massive wins in recent weeks. For instance, the American software giant expanded its partnership with Shield AI to develop AI-powered command and control solutions for autonomous uncrewed systems.
At the same time, the company also attained the Federal Risk and Authorization Management Program (FedRAMP) milestone, reinforcing its position as a trusted provider of secure cloud solutions for government operations.
Further upside could come as the Nasdaq-100 index reconstitution on December 13 presents a strong chance for Palantir’s inclusion, aligning the stock with lucrative opportunities among top-listed companies. The possible inclusion follows Palantir’s November shift from the New York Stock Exchange to the tech-heavy Nasdaq.
Following PLTR’s recent momentum, some Wall Street analysts have had their say on the equity. For instance, Wedbush Securities’ Dan Ives, who has labeled PLTR the ‘Messi of AI,’ sees more growth for the stock, citing its role in leading the AI software space in the coming months.
He noted that the company has a game-changing AIP strategy likely to dominate in the next 12 to 18 months.
On the other hand, Jefferies is warning of a potential crash in Palantir’s stock due to valuation concerns, suggesting that the stock may be pricing in future growth. This could put PLTR at risk if it fails to meet expectations.
Featured image via Shutterstock
