Jim Cramer is once again touting Palantir Technologies Inc to investors. On CNBC’s “Mad Money,” the outspoken host advised sticking with the AI company, stating, “There is no level that the buyers won’t take this stock higher.”
While Cramer is enthusiastic about the momentum, let’s examine the chart data leading up to Palantir’s upcoming third-quarter earnings.
Chart created using Benzinga Pro
Palantir’s stock has been soaring this year, witnessing an impressive 158% surge year-to-date. The stock remains comfortably above its key moving averages, with the current price of $42.70 signaling bullish sentiment supported by indicators like the eight-day SMA ($42.63) and the 20-day SMA ($40.80).
With a Moving Average Convergence/Divergence (MACD) of 2.02, the momentum favors the bulls. The stock’s Relative Strength Index (RSI) at 67.56 is edging towards overbought levels, advising some caution.
Read Also: Jim Cramer Says ‘Hold On’ To Palantir, ‘Let Them Walk It Up’; Warns That Travere Therapeutics Is Losing A ‘Ton Of Money’
Despite Cramer’s encouragement to hold on, technical analysis indicates that Palantir may be due for a pause.
Looking ahead to Palantir’s third-quarter earnings, scheduled for Nov. 4, the AI-powered momentum could sustain investor enthusiasm. However, with the RSI signaling potential overbought conditions, turbulence may be on the horizon for this rocketing stock.
For now, Palantir’s stock shows positive chart signals, but it’s essential for investors to monitor the stock’s overbought status as the earnings report approaches.
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