Could Palantir shares surge 60% to its post-IPO high?
The market had high hopes for big data analytics software company Palantir, co-founded by Peter Thiel who was also the co-founder of PayPal.
The stock price surged more than 400% from the date of its IPO in September 2020 to its all-time high price level recorded at the beginning of this year.
Palantir stock is now down 40% from its all-time high price level of around ~$45.00.
As the majority of Wall Street analysts are bearish on the stock it has caught the attention of ‘meme stock’ traders who like to try and short squeeze the larger institutions.
The daily chart below of Palantir’s share price shows an ascending triangle chart pattern has formed, as highlighted by the black ascending line and small horizontal line.
Source: Admirals MetaTrader 5, #PLTR, Daily - Data range: from 30 Sep 2020 to 21 Sep 2021, performed on 21 Sep 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
This chart pattern is typically seen as a bullish chart pattern where traders would expect the price to break through the top of the pattern, due to the pressure building from the buyers and the higher low cycles.
While Palantir’s stock price has broken through, the price hasn’t run away higher just yet. However, if it catches the attention of ‘meme stock’ traders then a hold above the top of the pattern around ~$27.30 could see a move to its post-IPO all-time high price level of around ~$45.00.
This would represent a more than 60% surge higher, so it’s certainly one to watch!
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