Charting Microsoft, Palantir, Amazon, RTX and Potentially Upping 2 Targets
Here’s how I see these four Sarge-folio stocks and why I could increase the price targets on two.
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What to do? Maybe the question should be…. “What am I doing with some of the Sarge-folio’s earnings season winners?” This has been a great season to date. Earrings and margins are through the roof. The Sarge-folio has had huge seasonal wins in Microsoft (MSFT), Intel (INTC), Amazon (AMZN), Palantir (PLTR), RTX (RTX), Lockheed Martin (LMT), CrowdStrike (CRWD), and Nvidia (NVDA), sort of. That last one is up 11% August to date but is yet to report. Oh, and there’s news out in Intel today. Let’s update a couple of those charts:
Microsoft
Microsoft is up 13.3% since we updated the stock post-earnings on July 30. Readers will see that the stock broke out of the “falling wedge” pattern of bullish reversal that we discussed going into that event. The stock has retaken its 200-day simple moving average and blasted out of that set-up as portfolio managers piled into the shares in order to increase exposure.
Both Relative Strength and the daily moving average convergence divergence have spiked and are now starting to look a bit overbought technically. That does not mean that the stock can nor go a bit further. We have a $532 target price on MSFT based on the current location of that 200-day line. I am not adding here, but I do not yet believe that the time for profit taking is upon us.
Palantir Technologies
Last Tuesday, we gave readers a bullish set-up for Palantir (PLTR) coming out of earnings. The stock is up 22% since that article was published and up 50% since its late July low.
Readers will see here that PLTR has taken off post-earnings and that the 200-day SMA was defended by professionals three days later. That’s huge. This line becomes the pivot after that successful defense. My feeling is that PLTR can be bought on weakness and that we have to increase our target price from $181 to $205.
Amazon
Amazon (AMZN) has also had a nice run. Readers will see that our “cup with handle” set-up worked to near perfection. But the upward run has cooled, and the stock is off of its post-earnings highs. We’re going to maintain our $316 target price and look to add should the stock decide to try to fill the gap that had been created in response to Q2 earnings. My thought is that the stock could sink as far as the 50-day SMA, which is where the prose will have to make a decision. That’s my add-level.
RTX
Look, it’s no secret that firms like RTX are about to sell more military hardware than they ever imagined.
Here we also have a “cup with handle” set-up that worked very well. Now we have something even more interesting going on. A much larger, much longer rising wedge of “bearish” reversal has emerged. Just one thing. RTX appears to be breaking out of that bearish pattern to the upside. This could result in an exacerbated upward movement should the upper trendline of the Wedge defend itself successfully. This is a new pivot. This also takes our target price up to $265 from $245.
At the time of publication, Guilfoyle was long MSFT, INTC, AMZN, PLTR, RTX, LMT, CRWD, NVDA equity.
