Palantir Technologies Stock Forecast: PLTR ready to test prior support floor at $20.55
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Palantir Technologies (PLTR) has been on a tear this summer. Just since the beginning of May, the data analytics company has seen its stock rise 133%. Year to date, the stock is up 183%.
It is nearly a month since Raymond James gave Palantir a downgrade based on its strong performance, but PLTR stock has continued to produce gains. Now Palantir stock seems poised to pop another 14% at least from here.
Palantir stock gained 3.9% on Tuesday and 0.4% in Wednesday’s premarket. NASDAQ 100 futures are also ahead 0.2% at the time of writing.
Palantir stock news: FedStart will distribute BloodHound Enterprise software
On Tuesday, Palantir announced a new partnership with software provider SpecterOps. The latter’s BloodHound Enterprise software is a cybersecurity tool that equips government agencies with the ability to quickly respond to attacks on their active directories (AD).
“Designed to help organizations proactively and continuously identify, manage, and remediate millions of AD Attack Paths, [BloodHound Enterprise] gives IT Ops and SecOps professionals the tools needed to dramatically and measurably improve their AD security posture with minimal effort,” Palantir said in a statement.
Palantir will use its FedStart platform to make BloodHound Enterprise available to a multitude of its existing US government agency clients. FedStart is an accredited platform that software makers can use to run their software offerings within. This is because FedStart has created a secure environment that is already FedRAMP and IL-5 compliant. Without FedStart, companies often have to spend an inordinate amount of money and time to become federally compliant.
"We created Palantir FedStart with the goal of enabling companies to reduce friction and deliver solutions to the government at the speed of innovation," said Akash Jain, president of Palantir USG. "SpecterOps’ BloodHound Enterprise is one of those companies at the cutting edge of attack path management whose solutions should be in the hands of the government without delay."
This announcement comes just a week after Palantir announced a separate partnership with Carahsoft Technology to distribute its Apollo platform to more state and local governments.
Palantir stock forecast
Palantir stock easily broke above the $17.06 support floor that comes from a major sell-off in May 2021. The next prior support level, which could turn into resistance, sits at $20.55. That floor held up in both March and July of 2021, so it has more significance than the $17.06 level. A retest at $20.55 would amount to a 14% gain from here.
A break of $20.55 would give bulls a large open field to retest the $26 to $29 supply zone. This zone proved to be stubbornly resistant to a number of rallies during the first year after the stock’s IPO.
Still, bears will note that Palantir stock is overbought on the weekly chart’s Relative Strength Index (RSI) and has been for much of the time since mid-May. If a consolidation phase is in order, then that $17.05 level might serve a supportive purpose once again. Otherwise, the 8-week Simple Moving Average (SMA) sits at $15.63.
Palantir stock is currently trading around $18, which was the price target given by both Bank of America and Raymond James over the past month.
PLTR weekly chart
