PLTR stock rally continues, targets key support turned into resistance at $20.55
- Palantir stock has risen 133% since May 1.
- The prior support floor from 2021 at $20.55 is now the nearest price target for bulls.
- PLTR stock is overbought on the RSI’s weekly chart.
- Palantir has formed a new partnership with SpecterOps.
Palantir Technologies (PLTR) has been on a tear this summer. Just since the beginning of May, the data analytics company has seen its stock rise 133%. Year to date, the stock is up 183%.
It is nearly a month since Raymond James gave Palantir a downgrade based on its strong performance, but PLTR stock has continued to produce gains. Now Palantir stock seems poised to pop another 14% at least from here.
Palantir stock gained 3.9% on Tuesday and, at the time of writing, it is gaining 2% during the first hour of Wednesday regular trading in Wall Street. NASDAQ 100 futures are ahead 0.2% at the time of writing.
Palantir stock news: FedStart will distribute BloodHound Enterprise software
On Tuesday, Palantir announced a new partnership with software provider SpecterOps. The latter’s BloodHound Enterprise software is a cybersecurity tool that equips government agencies with the ability to quickly respond to attacks on their active directories (AD).
“Designed to help organizations proactively and continuously identify, manage, and remediate millions of AD Attack Paths, [BloodHound Enterprise] gives IT Ops and SecOps professionals the tools needed to dramatically and measurably improve their AD security posture with minimal effort,” Palantir said in a statement.
Palantir will use its FedStart platform to make BloodHound Enterprise available to a multitude of its existing US government agency clients. FedStart is an accredited platform that software makers can use to run their software offerings within. This is because FedStart has created a secure environment that is already FedRAMP and IL-5 compliant. Without FedStart, companies often have to spend an inordinate amount of money and time to become federally compliant.
“We created Palantir FedStart with the goal of enabling companies to reduce friction and deliver solutions to the government at the speed of innovation,” said Akash Jain, president of Palantir USG. “SpecterOps’ BloodHound Enterprise is one of those companies at the cutting edge of attack path management whose solutions should be in the hands of the government without delay.”
This announcement comes just a week after Palantir announced a separate partnership with Carahsoft Technology to distribute its Apollo platform to more state and local governments.
Semiconductor stocks FAQs
A semiconductor is a term for various types of computer chips. Officially called semiconductor devices, these computer chips rely on semiconductor materials like silicon and gallium arsenide to process the electrical current that produces the modern world of computing. They come in many shapes, sizes, enhancements and configurations such as diodes, transistors and integrated circuits to more complicated applications like DRAM memory, simple processors and even GPUs.
First, there are the pure chip designers, such as Nvidia, AMD, Broadcom and Qualcomm. These companies use sophisticated software to design and test chips. Second, there are the equipment manufacturers that provide the machines necessary to build computer chips. These include ASML and Lam Research. Then, there are foundries that manufacture the chips. These include Taiwan Semiconductor and GlobalFoundries. Last of all are the integrated device manufacturers who design their own chips and additionally manufacture themselves. These include Samsung and Intel.
It is the observation that the number of transistors in an integrated circuit doubles every two years. The “law” is named after Gordon Moore, who founded Fairchild Semiconductor and later Intel. The doubling is possible due to the shrinking size of process nodes or parts in the computer chip. In 1971 the advanced commercial manufacturing had reached 10 microns in width. In 1987 semiconductor technology had advanced to 800 nanometers in width. By 1999, this process had moved to 180 nanometers. By 2007, the size had dropped to 32 nanometers, and this fell all the way to 3 nanometers in 2022, which is close to the size of human DNA.
In 2022, the global semiconductor industry had revenues just under $600 billion. In total, the industry shipped 1.15 trillion semiconductor units in 2021. The leading nations involved in the semiconductor supply chain are Taiwan, the United States, China, the Netherlands, South Korea, Japan and Israel.
Palantir stock forecast
Palantir stock easily broke above the $17.06 support floor that comes from a major sell-off in May 2021. The next prior support level, which could turn into resistance, sits at $20.55. That floor held up in both March and July of 2021, so it has more significance than the $17.06 level. A retest at $20.55 would amount to a 14% gain from here.
A break of $20.55 would give bulls a large open field to retest the $26 to $29 supply zone. This zone proved to be stubbornly resistant to a number of rallies during the first year after the stock’s IPO.
Still, bears will note that Palantir stock is overbought on the weekly chart’s Relative Strength Index (RSI) and has been for much of the time since mid-May. If a consolidation phase is in order, then that $17.05 level might serve a supportive purpose once again. Otherwise, the 8-week Simple Moving Average (SMA) sits at $15.63.
Palantir stock is currently trading around $18, which was the price target given by both Bank of America and Raymond James over the past month.
PLTR weekly chart