Palantir Stock (NYSE: PLTR) surged to its best day in a month, closing Thursday at a seven-month high and above trend line resistance. The long-awaited break above e $27.50 is encouraging and may be the catalyst for a substantial rally in the days ahead.
Palantir stock has been making the right moves for the last few weeks. Shares of the data analytics company have been trending higher since the middle of July. Although up until yesterday, had struggled to clear trend resistance. However, yesterday PLTR got the boost it needed after revealing it will partner with connected car data start-up Wejo. Speaking to CNBC, Palantir COO Shyam Sankar said the deal was, ‘very valuable and indicative of a broader opportunity, a fantastic opportunity to invest in highly ambitious companies.”
As predicted would happen in our last Palantir report, the daily chart shows that PLTR has broken out of a long-term rising wedge pattern. The successful clearance of the top boundary at $27.50 should lead PLTR to extend and fill the gap from February at $31.50. Furthermore, there is potential for Palantir to exceed $31.50 and make a run at the January all-time high of $45.00.
Although, the relative strength index is looking stretched. The reading of 71.76 points to a market getting overbought, and therefore, volatility could lie ahead. Moreover, the bullish view relies on the breakout holding. Thus, if Palantir reverses below $27.50, the optimistic price prediction becomes invalid in the near term.
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