Since our last analysis, Palantir Technologies (NYSE:PLTR) has established a strong upward movement and was able to break above the last high at $12.52. Thus, our expectations of new lows have been downgraded, and we have changed our chart to a more bullish expectation.
This breakout gave us reason to believe that the big correction in Palantir could already be over. This means that we are going to build bullish structures in the future. We have put the relevant Elliot waves on the chart, which will be important in the coming weeks.
It is also worth mentioning that the selling volume is almost completely exhausted on a weekly basis, and the MACD is very close to a major cross.
Technical View
Since the last low at $9.78, the price has made a remarkable rally and has increased almost +28% to $12.52 as part of the wave (I). After that, the stock suffered a sell-off, which provided the foundation for wave (ii). The share has since risen sharply, and we assume that we are in an impulsive wave (iii); the minimum target is $14.71.
After that, a short correction will occur within the wave (iv), and after this, we will enter wave (v) towards $16. Investors familiar with Elliot waves know that another large 1-2 setup will follow after this impulse. This means that the price will suffer a correction again, which will lead us back to the region of $13-$12. This again sets the foundation for long-term increases.
We can only name more precise price targets for wave two in the coming weeks. There is a slight risk of breaking below the last support at $10.28. This support is vital for maintaining the upwards movement.
If we should break below this support, we could suffer another correction which would lead Palantir back to prices under $9. This scenario, however, is unlikely, and we would publish a new article if the situation demands it.