Jim Cramer’s Latest Take
Investors familiar with Jim Cramer are no strangers to his unyielding optimism, and once again, he is leading the charge for Palantir Technologies Inc. enthusiasts. On CNBC’s “Mad Money,” the spirited host advocated for holding onto this Artificial Intelligence (AI) gem, declaring, “There is no level that the buyers won’t take this stock higher.”
Reading the Charts
However, as Cramer drums up support for the momentum, let’s dissect what the market charts are whispering ahead of Palantir’s impending third-quarter earnings announcement.
Chart created using Benzinga Pro
Palantir’s stock price has been on an astonishing upward trajectory this year, skyrocketing by an impressive 158% year-to-date. Technically speaking, the stock is reveling in bullish fervor, comfortably positioned above its five-, 20-, and 50-day moving averages. At the current price of $42.70, the indicators, including the eight-day Simple Moving Average (SMA) at $42.63 and the 20-day SMA at $40.80, paint a bullish picture.
With a Moving Average Convergence/Divergence (MACD) of 2.02, the momentum remains in favor of the bulls. However, the Relative Strength Index (RSI) hovering at 67.56 suggests an impending move towards overbought territory, signaling a need for caution.
Looking Ahead
As investors brace for the upcoming third-quarter earnings report scheduled for November 4, the AI-powered momentum behind Palantir could sustain the current investor enthusiasm. Nevertheless, as indicated by the RSI, rough skies may be on the horizon for this meteoric rise.
For now, the signals on the charts for Palantir stock remain bullish. However, investors are advised to keep a keen eye on the potential overbought status as the company edges closer to its earnings release.
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