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

Jim Cramer is stirring up excitement once more for Palantir Technologies Inc PLTR enthusiasts. On CNBC’s “Mad Money,” the effervescent host recommended staying with the AI stock, asserting, “There is no level that the buyers won’t take this stock higher.”

Despite Cramer’s push for investors to ride the wave, it’s prudent to delve into the insights provided by the charts as Palantir gears up for its third-quarter earnings report.

Chart created using Benzinga Pro

Palantir’s stock has been on an impressive rally this year, soaring a remarkable 158% year-to-date. Technically speaking, the stock is reveling in bullish territory, comfortably above its five-, 20- and 50-day moving averages. Priced at $42.70, the indicators point to a positive outlook, with the eight-day SMA at $42.63 and the 20-day SMA at $40.80.

Boasting a Moving Average Convergence/Divergence (MACD) of 2.02, the trend seems to favor the bulls. As the Relative Strength Index (RSI) climbs to 67.56, there are inklings of the stock edging towards overbought levels, signaling a need for caution.

While Cramer advises hanging on and enjoying the surge, the technical indicators hint at a possible pause for Palantir.

Looking Ahead to Earnings

With the third-quarter earnings report looming less than a fortnight away (on Nov. 4), Palantir’s AI-driven momentum might sustain the thrill for investors.

However, as indicated by the RSI, this upwards trajectory may encounter turbulence in the near future.

At present, Palantir’s stock exhibits bullish chart signals, yet investors would be wise to monitor the stock’s overbought status as it approaches the earnings announcement.

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