What is going on moongate, this video will be a brief update about what is going on with palantir. First, i will be going over some recent news related to the company. Then i will be doing a technical breakdown of its stock, so we know what price levels to watch for the remainder of the week. But before i get into all that, if you enjoyed this video, don't forget to drop a like and if you haven't already don't forget to join the moon gang by hitting the subscribe button.

All that support is truly appreciated and now, let's get started so part of the reason why palantir stock had such a nice rally today was because it was announced on bloomberg that palantir wins fda contract to power, drug review and inspections. The three-year deal is worth more than 44 million dollars and will allow the fda center for drug evaluation and research and the oncology center for excellence to use pound-tier software to integrate and analyze data. The software will help the agency approve drugs and monitor the safety of items. The fda contract is one of dozens.

Palantir has secured with u.s federal agencies in recent years. Government work, which palantir undertakes globally, now makes up more than half of its total revenue. As i've mentioned in previous palantir videos, the company is in a very good business sector, data analytics and software, and on top of that, its biggest customer is a very reliable and deep pocketed us government. Since the beginning of this year, palantir has secured more than 100 deals with private companies and health and government groups.

More recently, palantir announced that software will help the distribution of vaccines to 300 million americans through operation warp speed. Palantir is quickly becoming a very big player. In fact, the company reported revenue from governments grew 68 to 163 million during the third quarter, thanks mainly to deals in the us. So basically, palantir is continually making deals with various governments and private entities across the world and the most recent deal came with the fda and the market responded very well to the news.

Let's check out, what's going on in the charts, as we get close to the end of the trading day, palantir has gained 17 percent, which means its stock is right around 28, and this also means that since the most recent drawback, the stock has rallied an impressive 25 - and this is the current technical situation that we are dealing with for those of you who are new to the channel palantir ipo'd at the end of september and all the way up until early november, the stock was range bound between nine dollars and eleven dollars. Eventually, there was a breakout and rally to a new relative high at 17 and then after two days of consolidation, there was another push upward and once demand was confirmed at this trend line the stock exploded to its current all-time high at 33.50. Then there was a considerable drawback of 28 when citron came out with some bearish comments and called the stock, a full-blown casino, but eventually support was found in the low 20s and now, once again, it looks like palantir is off to the races. If this bullish momentum were to continue, my first target would be 30, which is where the stock was rejected on november 30th and november 25th and past that we have the all-time high at 33.50.

If and most likely, when palantir gets above this price level, we would have to wait for the chart to develop in this region and let price discovery play itself out. So we can pick out the new points of technical resistance. However, if bearish sentiment were to somehow increase, the first support i would be watching would come at the top of this region at 24 and past that i would be watching between 21 and 22, which would potentially align with this trendline. As of now, there's no divergence or anything like that in the rsi, but i would like to point out that the last time the rsi had a value of 70, the stock was trading closer to 17, which means i wanted to quickly.

Let you know that the name of this charting software is trading view and for those of you who are interested, there's a link to a free 30-day trial in the description of this video. Anyway, ever since paluntier started its downward trend, the stock was caught in a bull flag that eventually broke out and after consolidating around 24 for two days, the bull camp ended up. Winning this fight sliced through the previous support turned resistance at 26, and now it looks like we're on our way to the resistance at thirty dollars from the current level. That would be a gain of eight percent and to get to the all-time high.

That would be a gain of twenty percent. On the flip side, though, the closest support would come at 26, which would be a drop of 6.6 percent, and the top of this region of support would be a decline of 13. Now i'm not much of a swing trader, but the current risk to reward setup of 26 versus potentially over 33 is a pretty solid one. Personally, i do believe that palantir is a long-term winner and that's why i invested in shares at the 24 mark and plan on holding those for years to come.

However, i do feel very confident about this short-term momentum, so to take advantage of that, i decided to buy some call options and to be fully transparent. Here are the details of that play. The strike price is 28. The expiration date is december 24th, and the premium that i paid per contract was 2.61 and, as you can see, it was filled this morning moving forward.

I would recommend paying attention to these levels of support and resistance and watching for divergence to be formed in the rsi, as things continue to develop, both fundamentally and technically, with paluntir i'll make sure to keep you updated in future videos and also keep you posted on How this options play works out so make sure you have your notifications turned on thanks for watching. I really hope that you found some value in this video. I would love to know your thoughts on palantir in a comment below and more specifically, how long do you think it will take for the stock to hit a new all-time high above 33.50 and if you have any questions, feel free to post those as well? If you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moon game by hitting the subscribe button. All that engagement really helps this channel out thanks for watching and until next time.

Best of luck in the markets. You.