Palantir Technologies and Jumia Technologies are two recent IPOs that I believe have the potential to go on explosive runs. Palantir ($PLTR) is a software company that IPOed in September of 2020 and rapidly launched to over $30 a share. It then pulled back to a low of $22.50 and has yet to close below its' 50-day moving average. It has been on my watchlist for quite some time and I took a position today as it cleared resistance around $28.
Jumia Technologies ($JMIA) is considered the "Amazon.com of Africa." The chart is just incredible. It first appeared on my radar in November as it cleared $20 and ran up towards $50. I took a position today as it broke out on volume. There is an old Jesse Livermore rule that an excellent time to buy a recent IPO is when it clears its' all-time high after a reaction. JMIA did that today and it did so on impressive volume. In addition, it has built a very large cup on the weekly chart. A big base like this often offers large potential for a major move higher.
Jumia and Palantir are both volatile growth stocks and thus position sizing with a proper stop loss in place is a must when trading newer issues like this. No matter how much I like a stock, I know anything can happen and must always protect my downside.
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Full Disclosure: JMIA and PLTR are stocks I currently own.
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