Palantir Technologies Inc. (PLTR) Just Overtook the 20-Day Moving Average

From a technical perspective, Palantir Technologies Inc. (PLTR) is looking like an interesting pick, as it just reached a key level of support. PLTR recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

PLTR has rallied 13.7% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PLTR could be on the verge of another move higher.

Once investors consider PLTR's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 1 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on PLTR for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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