Jim Cramer is once again excited about Palantir Technologies Inc fans as he rings the bell for PLTR. On CNBC’s “Mad Money,” the passionate host recommends holding onto the AI stock, stating, “There is no level that the buyers won’t take this stock higher.”
Despite Cramer’s encouragement to ride the wave of momentum, let’s delve into the insights offered by the charts ahead of Palantir’s upcoming third-quarter earnings.
Chart created using Benzinga Pro
Palantir’s stock has been on a phenomenal rise this year, soaring by a remarkable 158% year-to-date. Technically, the stock is reveling in a bullish state, comfortably above its five-, 20- and 50-day moving averages. At the current price of $42.70, key indicators such as the eight-day SMA ($42.63) and the 20-day SMA ($40.80) are all signaling positivity.
With a Moving Average Convergence/Divergence (MACD) of 2.02, the momentum appears to favor the bulls. However, the stock’s Relative Strength Index (RSI) of 67.56 is creeping towards overbought levels, indicating a need for caution.
While Cramer advocates holding on for the thrilling journey, technical analysis hints that Palantir might be in store for a pause.
With third-quarter earnings just around the corner (scheduled for Nov. 4), the momentum driven by Palantir’s AI capabilities may well continue to excite investors. Nevertheless, as the RSI portends, this upward trajectory may hit turbulence soon.
Currently displaying positive chart signals, Palantir’s stock demands a watchful eye on its overbought position as the earnings date approaches.
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