The Palantir stock price is once again higher than it was at the start of the year. And Thursday’s strong Q2 trading update could see PLTR go even higher. Furthermore, the data analytics firm may prove a winner for its devoted investor fan base if it continues to grow its revenue at the same pace it did in the last three months.
Palantir Technologies Inc (NYSE: PLTR) reported Q2 adjusted earnings of 4 cents a share, in line with analysts expectations. However, revenue for the quarter increased by 49% to $375 million, far more than the expected $360 million. Furthermore, the company revised its sales estimates for this quarter higher. As a result, the stock was well bid premarket and continued to find support throughout the day, climbing as high as $25.76 (+15%) before settling at $24.89, an improvement of +11.36%.
The daily chart highlights the turnaround in PLTR following yesterday’s data. Earlier this week, the stock was below the 50 and 100-day moving averages and testing trend line support at $21.56. However, the Palantir stock price has surpassed the 100-day at $22.92, the 50 at $23.65 and may soon test the trend line resistance.
A robust trend line that links March and June’s highs is visible at $27.87. This is a logical target for the bulls and, considering the huge trading volume yesterday, a likely destination over the next few days. And should PLTR breach this resistance, technically speaking, $40.00 is an achievable target.
However, the stock is notoriously volatile. And on that basis, should the price fall below the supporting trend at $21.56, the bullish outlook becomes invalid, suggesting a return to May’s $17.06 low is possible.
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