October 24, 2024

Jim Cramer's Bullish On Palantir, But Is The Stock's Winning Streak Too Hot?

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Jim Cramer is once again ringing the bell for Palantir Technologies Inc (NYSE:PLTR) fans. On CNBC’s “Mad Money,” the fiery host recommended holding on to the AI stock, saying, “There is no level that the buyers won’t take this stock higher.”

But while Cramer is urging investors to ride the momentum, let’s dive into what the charts tell us ahead of Palantir’s third-quarter earnings.

Chart created using Benzinga Pro

Bullish Wave Continues — But Beware the Overbought Zone

Palantir stock has been on an absolute tear this year, up a staggering 158% year-to-date. From a technical standpoint, the stock is basking in bullish glory, sitting comfortably above its five-, 20- and 50-day moving averages. The current price of $42.70 spells bullish across key indicators such as 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 inching toward overbought territory, suggesting some caution is warranted.

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While Cramer may be encouraging investors to hold on and enjoy the ride, technicals hint that Palantir could be due for a breather.

Q3 Earnings on the Horizon: Will AI Hype Keep the Stock Climbing?

With the third quarter earnings less than two weeks away (on Nov. 4), Palantir’s AI-powered momentum could continue driving investor excitement.

But, as the RSI suggests, this rocket ride may face turbulence soon.

For now, Palantir stock has bullish chart signals, but investors should keep one eye on the stock’s overbought status as it heads into earnings.

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This article Jim Cramer’s Bullish On Palantir, But Is The Stock’s Winning Streak Too Hot? originally appeared on Benzinga.com

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