Palantir Technologies Inc. (NASDAQ: PLTR) has gained 10% in the past week, attracting interest from investors and swing traders. As the company gets ready to announce its Q1 2025 earnings, people in the market are eager to see if this positive trend will continue or if a decline is likely.
Palantir’s Recent Performance and What’s Driving the Rally
PLTR stock has risen more than 14% in the last week and over 60% in the past month. This increase comes from high demand for Palantir’s AI-driven platforms, especially the Artificial Intelligence Platform (AIP), which many commercial and government clients are using.
The company focuses on generative AI and has secured important contracts in defense, healthcare, and financial services, making it a leader in the growing AI market.
Wall Street expects Palantir’s Q1 2025 earnings to show growth, with estimates suggesting a 36% increase in revenue to $863 million and adjusted earnings per share rising 65% to $0.13.
The company’s ongoing profitability and growing customer base have further boosted investor confidence, placing PLTR among the best-performing stocks in the S&P 500 this year.
Technical Analysis: Is PLTR Still a Good Swing Trading Candidate?
Despite strong fundamentals and positive sentiment, technical indicators suggest caution for swing traders right now. PLTR is nearing a major resistance zone between $125 and $128, which limited its growth earlier this year. Analysts see this area as a key resistance point, increasing the chance of a short-term pullback.
Additionally, there is a negative trend in the Relative Strength Index (RSI). This means that while the stock price is climbing, the momentum is slowing down. Such a divergence often leads to price reversals or consolidations, making it important for traders to keep an eye on it.
Although trading volume has increased alongside the price, which is usually a good sign, the stock’s close proximity to resistance levels suggests that any disappointment, like missing earnings expectations, could lead to quick profit-taking.
Short- and long-term moving averages still show a bullish trend, and the Moving Average Convergence Divergence (MACD) is still giving buy signals. However, since the stock is trading above $124 and volatility is high, the risk/reward ratio is less appealing for new swing trades unless PLTR breaks above the $128 resistance level.
What to Expect This Week
Palantir will report its earnings on May 5, and we can expect high volatility. Options markets indicate a significant price move, and trading volumes have surged, showing strong institutional interest. For swing traders, it will be crucial to look for a breakout above the resistance or a pullback to support levels between $110-$115, which could offer better entry points.
In short, while Palantir’s long-term outlook looks strong due to its leadership in AI and solid financials, technical signals show the stock is at a key moment. Swing traders should be cautious, keep an eye on earnings results, and prepare for increased volatility.
Those looking to enter new positions may find better opportunities after a pullback or a clear breakout above resistance.