Palantir Stock Jumps 5.5%, but PLTR is preparing for a ‘Black Swan’

On Wednesday, the Palantir stock price continued higher, closing above $25.00 after its best day in two months. But does PLTR know something we don’t? After a week of trading sideways, the data analytics firm got back to its winning ways, gaining $1.30 to achieve its highest closing price since the 30th of June. And whilst this could be expected considering last week’s impressive Q2 trading update, the revelation the company is preparing for the unknown certainly wasn’t.

Palantir Technilogies Inc (NYSE: PLTR), the Peter Thiel and Alex Karp backed software company, is taking no chances. A securities filing has revealed the company has spent more than $50 million on gold bars as a hedge against future events. This is not the first time the company has expressed an interest in diversifying. In May, PLTR announced exploring Bitcoin purchases and would welcome payment in the digital currency. Furthermore, Palantir has been putting its capital to work with several recent acquisitions and SPAC investments.

Although spreading the risk is clearly a prudent move, it may be troubling for many that a tech company with close links to government, particularly defence, is expecting the unexpected. Chief operating officer Shyam Sanker said of the bullion purchase, “You have to be prepared for a future with more black swan events.” However, the Palantir stock price responded positively and is now on course for a run at July’s high and potentially higher still.

PLTR price forecast

Although PLTR is still far below January’s $45.00 peak, the stock has been trading higher for the last three months. After sliding to $17.05 in May, Palantir has improved by more than 47%, aided by increasing revenue and impressive client growth. However, the stock price will soon run into overhead resistance, which will tell us if the recovery is sustainable.

The daily chart shows a clear trend line from March that sits above the market at $27.75. This is a significant resistance level and, if cleared, could set PLTR on a path materially higher. Several technical indicators support the bullish outlook. Firstly, Palantir is above the 50, 100, and 200-day moving averages. Additionally, the volume spiked on yesterday’s rally, which indicates willing buyers are returning. Not to mention the Relative Strength Index is trending higher in a bullish divergence.

The outlook for PLTR remains positive as long as long-term trend line support at $22.25 is respected. Furthermore, above $27.75, the bullish view becomes even more so. A clearance of this level should see the price extend to $31.51 and fill the gap from February. And beyond that, the Palantir stock price has the potential to revisit $40.00.

However, this view becomes invalid below $22.25. Although in saying that, the balance of probability is to the upside. Although, who knows what black swan event may lie ahead.

Palantir Stock Price Chart (Daily)

Palantir Stock price

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