Jim Cramer is once again advocating for Palantir Technologies Inc fans. During a segment on CNBC’s “Mad Money,” the animated host conveyed his support for holding on to the AI stock: “There is no level that the buyers won’t take this stock higher.”

While Cramer champions the momentum, let’s delve into what the charts reveal leading up to Palantir’s third-quarter earnings.

Chart created using Benzinga Pro

Palantir stock has been blazing a trail this year, soaring a notable 158% year-to-date. From a technical perspective, the stock is reveling in bullish territory, comfortably above its five-, 20- and 50-day moving averages. The current price of $42.70 signifies a bullish sentiment across critical indicators such as the eight-day SMA ($42.63) and the 20-day SMA ($40.80).

With a Moving Average Convergence/Divergence (MACD) of 2.02, the momentum favors the bulls. The stock’s Relative Strength Index (RSI) at 67.56 is edging towards overbought levels, indicating a need for caution.

Read Also: Jim Cramer Says ‘Hold On’ To Palantir, ‘Let Them Walk It Up’; Warns That Travere Therapeutics Is Losing A ‘Ton Of Money’

While Cramer is advocating for investors to stay aboard and relish the journey, technical indicators hint that Palantir might be due for a pause.

With the third-quarter earnings less than two weeks away (on Nov. 4), Palantir’s AI-driven momentum could keep fueling investor enthusiasm.

However, as indicated by the RSI, this upward trajectory may encounter turbulence soon.

Presently, Palantir stock displays bullish chart signals, but investors ought to monitor the stock’s overbought status as it approaches earnings.

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