Why Palantir's Stock Looks Set To Fly Higher

Palantir Technologies Inc PLTR has become stuck in a small range, trading between $23 and $26 for the past 16 trading days just under a resistance level at $25.58.

Palantir’s stock may be garnering the strength to bust through that resistance level because the more times a stock bumps into a level the weaker the level becomes. Palantir has banged into the $25.50 area multiple times and under Monday closed the day just below it.

See Also: How to Buy Palantir Technologies Stock Right Now

The Palantir Chart: Palantir printed a bullish green hammer candlestick on the daily chart. With its lower wick, the candlestick demonstrates that when Palantir’s stock dropped into the $24 level, buyers came in and purchased shares. The candlestick suggests higher prices may come in the future.

Palantir’s stock has a gap above it from $30.57 to $31.30 and because gaps fill 90% of the time, it's likely Palantir’s stock will revisit that range in the future although it will take some work. Palantir must clear two more resistance levels above $25.58 before looking to fill the gap.

Palantir’s stock is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day EMA, all of which are bullish indicators. The eight-day EMA is also acting as a support level for the stock and because it's trending upwards, Palantir looks poised to take on its closest resistance.

Bulls want to see Palantir’s stock pop up over the resistance level and for momentum to push it up to its next resistance level at the $27.47 mark. If Palantir can clear that level, it has room to move up toward $30.

Bears want to see Palantir’s stock continue to reject its resistance and for sellers to come in and drop the stock down below the eight-day EMA. If Palantir’s stock lost that level as support it could fall back toward $23.27. A loss of that level could see the stock fall back to the $21 area.

PLTR Price Action: Palantir was trading down 1% to $25.15 at publication time.