Palantir Stock Rally Continues: What Comes Next For PLTR?

Palantir stock has made a remarkable comeback of late. Yesterday’s close marked its fourth consecutive weekly gain. Next week could be its biggest test yet.

Palantir (NYSE: PLTR) ended Friday’s session at $24.03, marginally higher by +0.40 (+1.69%).

In isolation, it’s not much to write home about. But the 4.71% weekly gain brings its 4-week performance to +40.85%.

The Peter Thiel-backed tech giant may be best known for its data-analytics business, but lately, it has grabbed headlines for its investments.

Over the last three months, Palantir has invested in several Special Purpose Acquisition Companies (SPAC). A SPAC is basically an empty company formed for the sole purpose of raising money via an IPO. The capital is then used to finance the purchase of another company.

The recent rise in Palantir stock has now run into a key area of resistance. How the price performs at this important level will dictate if the good run of form continues.

PLTR Price outlook

The daily chart shows the rally has pulled back from the resistance of a descending trend line. The trend at $24.60 has been in place from the March $27.47 high.

The 100 DMA at $25.25 is another key level to watch. Considering the current upside momentum, there is a good chance that Palantir will cross these barriers soon. Nonetheless, after adding +40% in such a short time, it need to consolidate first.

Bulls may look to add on a close above the 100 DMA and target the February high at $30.34.

A stop could then be placed below the 50 DMA at $22.23.

A failure to hold this level would suggest the immediate bullish outlook is invalid.

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Palantir Stock Daily Chart

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