This Inventory Hit a 52-Week Excessive - And It is Nonetheless Surging

KEY

TAKEAWAYS

This inventory reached new 52-week excessive once more and might be worthwhile buying and selling candidate
Including a momentum indicator to your charts will assist determine if there’s sufficient momentum to push the inventory larger
A StockCharts Technical Rank (SCTR) rating above 90 makes this inventory technically robust

Palantir Applied sciences (PLTR) was a “talked-about” inventory shortly after its preliminary public providing (IPO) in September 2020. The inventory reached a excessive of $45 in January 2021 and headed decrease, buying and selling sideways till about November 2021. From there, the inventory value saved falling.

CHART 1: WEEKLY CHART OF PALANTIR TECHNOLOGIES (PLTR). The inventory has been trending decrease after reaching an all-time excessive of $45. Will the inventory attain $45 once more or stall?Chart supply: StockCharts.com. For instructional functions.

The inventory reached a low in December 2022. It has began displaying indicators of life, though it has been an up and down journey. The inventory is now hitting new 52-week highs.

CHART 2: DAILY CHART OF PLTR. The inventory is trending larger, buying and selling above its 21-day exponential transferring common (EMA). PLTR additionally has a really excessive StockCharts Technical Rank (SCTR) rating, and the share value oscillator is in constructive territory. The inventory has momentum that is pushing the inventory larger. How a lot larger will it go?Chart supply: StockCharts.com. For instructional functions.

The above chart reveals the next factors price noting:

How To Scan for Shares Hitting 52-Week Highs

You possibly can scan for shares hitting new 52-week highs utilizing the New 52-Week Highs scan from the StockCharts Pattern Scan Library. From Your Dashboard or Charts & Instruments tab, scroll to the Pattern Scan Library and run the New 52-Week Highs scan. The scan will filter out all of the shares and ETFs that meet the scan standards.

How excessive can the inventory go? Theoretically, it may attain its all-time excessive of $45, however it could not essentially be easy crusing. Trying on the weekly chart, PLTR may hit resistance across the $26–$29 degree. If the inventory value is ready to break above this degree, the subsequent resistance might be wherever from $37–$45.

Why is scanning for shares which might be hitting new 52-week highs vital? It goes again to the technique of legendary inventory dealer Jesse Livermore. One in every of Livermore’s standards was to determine shares which might be breaking out on a brand new excessive. It meant the inventory had overcome a resistance degree and was prone to transfer larger. However the inventory wants momentum. With out it, the inventory value may fall again to its 21-day EMA.

The underside line: It is price working the New 52-Week Highs scan frequently and going by means of the charts of the shares and ETFs that meet the factors. Search for the momentum by taking a look at an indicator just like the PPO and watching buying and selling quantity. Quantity must be robust to push the worth larger.

Disclaimer: This weblog is for instructional functions solely and shouldn’t be construed as monetary recommendation. The concepts and techniques ought to by no means be used with out first assessing your personal private and monetary scenario, or with out consulting a monetary skilled.

In regards to the creator:
Jayanthi Gopalakrishnan is Director of Website Content material at StockCharts.com. She spends her time arising with content material methods, delivering content material to teach merchants and traders, and discovering methods to make technical evaluation enjoyable. Jayanthi was Managing Editor at T3 Customized, a content material advertising and marketing company for monetary manufacturers. Previous to that, she was Managing Editor of Technical Evaluation of Shares & Commodities journal for 15+ years.
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