Palantir (PLTR) Stock: Key Levels to Watch Ahead of Earnings Report

Palantir is set to report its latest earnings today after the market closes, and investors are closely watching for any surprises.

Palantir Stock Overview: Is It Overvalued?

Currently, Palantir shares are trading at $81.01, with an extremely high price-to-earnings (P/E) ratio of 417 and a forward P/E of 176. Compared to its industry peers and the broader market, these valuations suggest that Palantir may be significantly overvalued.

With such high expectations already priced in, any earnings disappointment could trigger heightened volatility over the next few days.

Technical Analysis: Key Resistance and Support Levels

From a technical standpoint, Palantir’s stock is testing major resistance levels:

• All-time high resistance at $85.21 – This remains a key barrier, and any negative sentiment from earnings could halt further upside momentum.
• Steep supportive trendline – A potential correction of 15% would be needed for this trendline to be tested.
• Additional support at $63.50 – This level aligns with the 20-day moving average, making it a crucial zone to watch. A break below $63.50 could trigger a deeper sell-off.

Bullish and Bearish Scenarios Post-Earnings

• Upside Targets: A clear breakout above $85.21 could push Palantir stock towards $90, with $100 as the next psychological target.
• Downside Risks: If earnings disappoint and support at $63.50 breaks, a larger correction may unfold.

Momentum Indicators Signal Overbought Conditions

Both the Relative Strength Index (RSI) and Williams %R indicators suggest that Palantir stock is in overbought territory, adding downward pressure heading into earnings.

Final Thoughts: Caution Ahead of Palantir’s Earnings Call

While optimism remains ahead of Palantir’s earnings, the stock’s high valuation, key resistance levels, and overbought indicators suggest a high-risk, high-reward setup. Traders and investors should remain cautious as volatility is likely to spike following the earnings release.