Palantir produces prolific results, shares surge, but some analysts still say meh
Following the earnings announcement, a strong revenue growth trend and an upward revision of guidance have been confirmed, resulting in a sharp increase in the stock price. In particular, commercial sales have exceeded expectations, attracting market attention.
Following the earnings announcement, the stock price has surged, demonstrating strong momentum by surpassing the previous resistance level of 138.90. We are considering an entry based on the fact that the trading volume is significantly higher, at 2.13 times the 20-day average.
The stock price has surpassed the previous resistance level of 138.90, indicating an overbought condition with the potential for further upside. Therefore, I will take profits upon reaching 138.90 and will cut losses if the support level of 117.89 is breached.
The RSI(14) is at a somewhat low level of 39.5, and the moving averages are in a non-aligned state. The recent 7-day volatility is +1.8%.
The prediction of a strong upward trend, accompanied by trading volume breaking through resistance levels, was accurate. However, despite entering an overheated phase, the stock price closed significantly lower than expected, falling below the stop-loss level of 117.89, resulting in substantial losses.
It is positive that trading volume increases when the resistance level is broken; however, it should be noted that volatility may increase if there is a sharp rise while the RSI is low. When entering during an overheated period, I will manage the stop-loss criteria more strictly.