Palantir Technologies Inc. (NASDAQ:PLTR) shares are trading lower Tuesday, even as Truist Securities reiterated a Buy rating and $223 price target on the stock. Here’s what you should know.
- Palantir Technologies stock is facing resistance. What’s driving PLTR stock lower?
Truist Stays Bullish On Palantir’s Forward Deployed Engineer Advantage
Truist kept its Buy call and $223 target intact on Palantir, aligning itself with almost two dozen other analysts who have bumped up their earnings expectations for the company lately.
To make its case, the firm brought in JC Christian, who runs an AI-focused recruiting business, for a client call built around a simple premise: elite forward deployed engineers are harder to come by than the chips or data center capacity everyone else is fixated on, according to Investing.com.
Christian’s team spent half a year digging into the question, sitting down with more than 250 executives and examining the backgrounds of over 300 professionals working in AI and forward deployment roles. Based on that work, Truist argues Palantir sits in an unusually strong position, since the company essentially invented the forward deployed engineer role and has trained something like 4 out of every 5 top-tier engineers now working in it.
Palantir’s Chart Shows a Stock Pulling Back After an Extended Run
Despite Truist’s bullish stance, Palantir’s technical picture points to a stock that had run up further than its recent trend could easily support. Shares remain about 6.7% above their 20-day moving average of $161.96 and roughly 22.9% above their 50-day average of $140.73, a level of extension that often invites pullbacks even within a broader uptrend. The longer-term picture is more mixed, with the 50-day average still below the 200-day average following a death cross in February, a sign the bigger trend only recently turned more aggressively bullish.
Momentum offers the clearer near-term signal. The MACD line sits below its signal line with a negative histogram, pointing to cooling upside pressure compared with the stock’s prior upswing, a pattern that often means buyers are losing control unless the stock can reaccelerate.
Traders are watching $187.50 as resistance, a level where rebounds have tended to stall after a sharp advance, and $148 as support, a zone closer to the stock’s intermediate trend where buyers have previously stepped in. A run back toward the stock’s 52-week high of $207.52 would likely require a clean break above that resistance, while a deeper pullback would put more focus on whether buyers defend that support zone, given the 52-week low sits at $106.37.
PLTR Shares Are Dipping
PLTR Price Action: Palantir shares were down 1.23% at $173.72 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Mamun Sheikh/Shutterstock
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