Palantir May Be On The Verge Of A Breakout After Earnings

Palantir Technologies Inc. PLTR shares are trading higher Tuesday morning, possibly in anticipation of the company's second-quarter earnings report on Thursday. The stock is popular among Reddit’s WallStreetBets community.

Palantir Technologies was up 0.04% at $22.94 at last check.

Palantir Technologies Daily Chart Analysis

• The stock is trading in what technical traders call an ascending triangle pattern, and may be ready to break out soon.
• The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The $25 price level has held as resistance multiple times and saw a fake breakout. This area may hold as resistance again for the stock.
• The Relative Strength Index (RSI) has been moving up the past couple of weeks and crossed above the 50 mark. The RSI now sits at 51, meaning there are now more buyers in the stock than sellers for the first time in a while.

What’s Next For Palantir Technologies?

Bullish traders are looking to see the stock continue to trade above the higher low trendline. Bulls would then like to see the stock breakout above resistance and consolidate.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. This could let the stock see a further bearish push.

See also: How to Buy Palantir Technologies (PLTR) Stock