I believe Palantir will take longer to pull back or at least consolidate, given its massive surge over a short period. The stock's rapid rise, with a 151% gain earlier this year, suggests it might need time to stabilize after such a steep climb. This kind of momentum often leads to a period of adjustment rather than an immediate drop.
In my view, the valuation does seem pretty high at the moment. After touching that intraday high of $190 on August 12 and then dropping as much as 25% before a slight recovery, the current price reflects some overextension. This could mean that consolidation, rather than a sharp decline, is more likely in the near term as the market finds a new equilibrium.
I see $150 as a critical support level. If the share price can hold around this point, it would be a positive sign for its short-term stability. The fact that it's still 18% below its all-time high adds to the case that this level might act as a floor, at least for now, given the recent volatility.
For me, this isn't the time to buy the dip at $150 just yet. While the partnerships with Lumen, Lear Corp, and Pact are encouraging, the high valuation and recent drop make me cautious about jumping in. I'd rather wait and see if the stock can demonstrate stronger support at this price before considering any new position.
As for upside potential, I think it's there, but it might take time to materialize. Palantir's performance in the S&P 500 this year shows its strength, and new partnerships could drive future growth. However, with the stock still digesting its gains, I'd expect any significant upward move to be gradual rather than immediate.
Personally, I plan to continue holding my position. I'm not ready to sell at $150, especially if it holds as support. My strategy is to monitor its movement closely over the coming weeks, watching for signs of whether it consolidates or starts to trend upward again.
If I were to decide, $150 doesn't feel like a sell point for me right now. The stock's fundamentals and partnerships suggest long-term potential $Palantir Technologies Inc.(PLTR)$
As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.
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