Palantir Stock Soars On This Continued Trend: What The Chart Says

Palantir Technologies Inc PLTR was flying over 5% higher on Thursday propped up by overall market strength and continued interest in the r/WallStreetBets community of retail traders. The stock has been trading in a steep uptrend since reaching a July 19 low just above the $20 mark.

Options traders hammered bullish call contracts throughout the day believing the stock has more room to run. The options traders purchased over millions worth of calls with one trader paying $201,150 for a single order of 1350 contracts at $1.49 per piece. The trader chose a $27 strike price and an expiry of Sept. 24.

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The Palantir Chart: Palantir’s stock put in its last higher low on Sept. 20 and Sept. 21 at the $26.08 level, which also created a bullish double bottom pattern. Palantir will need to trade up over its most previous higher high at $29.29 for the uptrend to continue.

On Thursday Palantir was working to print a second candle in a bullish kicker candlestick pattern. The pattern began on Wednesday when the stock reversed course and printed a green Marubozu candlestick.

There is a gap above between about $30.35 and $31.24 left behind after Palantir suffered a bearish reaction to its Feb. 16 earnings print. Gaps fill 90% of the time, so it's likely Palantir will trade up to fill the gap in the future.

Palantir’s stock was registering a relative strength index (RSI) of about 65% on Thursday indicating the stock may need eventual consolidation. The RSI has been falling lower while the stock price has been rising, however, which shows hidden bullish divergence. This may give Palantir at least one more push to the upside in the near future.

Palantir is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 200-day simple moving average, which indicates overall sentiment is bullish.

• Bulls want to see big bullish volume push Palantir’s stock up over a resistance level at $30.44 and into the overhead gap. Above the level, Palantir has resistance at $33.11.
• Bears want to see big bearish volume come in and drop Palantir down below a support zone at $27.47. Below the level, there is further support at $25.58.