We've Got a Higher Target Price for Palantir

Greetings, my legions of loyal Palantir Technologies PLTR investors. For joy, for joy, I come bearing good news from a technological perspective. Rock on. 

I wrote to you all just a little over two weeks ago to let you know that, despite what had been a three-month downtrend in the share price, that I had still been adding and that I was still most definitely a long-term Palantir bull. Nothing has changed, fundamentally, but we do have a development in our technical analysis of this name, and it's for the better.

In late May, we showed you this chart:

We noted that the three-month descending triangle had closed. We warned that this kind of action often brings volatility and can sometimes be seen as bearish, but that volatility was likely due either way. At the time, the stock had tested its 50-day SMA from below but had failed. Readers may recall that when I wrote that piece, I did reiterate my $29 target price. 

Now, the last few sessions may have turned for the worse, but that might just be a positive. Take an updated look at our chart:

Our descending triangle has morphed into a cup-with-handle pattern which, by the way, is often seen as a more bullish setup. Readers will see that relative strength is in a better place, and that the daily MACD is decisively more bullish than it was two weeks ago. The stock did finally not only hold its 21-day EMA but retake its 50-day SMA, which has brought more institutional portfolio managers on board. Palantir is currently a top-ten holding for me.

Palantir Technologies (PLTR)

• Target price: $31 (up from $29)
• Pivot $24
• Add: Down to the 200-day SMA
• Panic: On a loss of that 200-day SMA

At the time of publication, Guilfoyle was long PLTR equity.