Before the market opening on February 4, 2025, hours after Palantir Technologies (PLTR) reported stellar Earnings, this is what I discussed with MPTrader members:
In reaction to Earnings, PLTR has sustained strength above my "outlier" target zone of 96 to 100, which requires new upside pattern parameters. My optimal price path from atop the post-Earnings, 25% upmove points to an immediate objective of 105-08, followed by a contained pullback into the 95 area, ahead of a thrust toward 115-118 thereafter... Last is 103.50...
PLTR stock subsequently rocketed to a new ATH at 125.41 on 2/19/25 (last Wednesday), but after the close, reversed sharply lower (10%) in reaction to a memo from Defense Secretary Pete Hegseth calling for an 8% cut to the defense budget in each of the next 5 years, which investors used as an excuse to take profits in a name that climbed in price over 500% from May 2024 to February 2025, and that represented an "elevated" Forward P/E of 450!
Last Thursday morning (2/20/15), with PLTR trading at 108.16, I posted the following technical update to our MPTrader Discussion Room:
Whatever the reasons for the sell-off, technically, PLTR has the right look of completing a major Jan-Feb upleg from 63.40 (1/13/25) to 125.41 (2/19/25)... My pattern work is acutely aware of the UNFILLED 2/03/25 post-Earnings Up-Gap from 83.74 to 99.32, which looms large as a downside "corrective magnet" in the hours and days ahead. At the moment, my optimal corrective target window is 89 to 94, which will amount to a 25%-30% decline from the ATH of 125.41... Last is 108.16...
Fast-forward to Friday's close and my attached Weekly Chart of PLTR. We see a huge Red Candle that signifies a Weekly Bearish Engulfing Candle, otherwise known as a key downside reversal week, which traditionally is considered a major technical warning signal that "something ended on the upside ahead of a period of digestion and correction."
Heading into next week's action, PLTR traders and investors will experience technical headwinds from a Weekly Downside Reversal and a "magnetized" unfilled up-gap pulling prices to the downside.
My pattern work argues that the "easy money" is behind us in PLTR stock. At best, the price structure will be contained in a volatile, sideways trading range (85 to 115?), but at worst, it could correct into the 68 to 72 target support window ahead of the next sustained upleg.
When my pattern and momentum work indicate (scream) that PLTR stock is at or near corrective exhaustion, we will explore the opportunistic setups together... MJP
Join Mike and MPTrader members ASAP ahead of consequential earnings (HIMS, HD, NVDA, SNOW, CRM, DELL, SOUN to name just a few) as well as important PCE inflation data that will impact individual stocks, sector ETFs, macro indices, commodities, precious metals, and Bitcoin...
