Palantir price levels to watch as the stock jumps to a new all-time high

Shares of Palantir (PLTR) are likely to remain in focus after surging on Tuesday following news that the analytics software provider’s entire product suite has received approval to process sensitive federal workloads, giving the company the ability to do a To provide a range of services to government agencies.

Sentiment towards the stock may also have experienced an upswing afterwards Barrons reported that the software maker remains a top contender to join the Nasdaq 100 as the tech-heavy index undergoes its annual reconstitution after the company last month listed its Class A common stock from the New York Stock Exchange (NYSE). transferred to the Nasdaq.

Palantir shares rose nearly 7% to close at just under $71 on Tuesday after hitting a record high of $71.37 during the session. The stock has risen more than four-fold since the start of the year as demand for the company’s customizable artificial intelligence (AI) software solutions increases.

Below we explain the technical data of the Palantir chart and point out key price levels worth paying attention to.

Continuation movement

Since breaking out of a textbook pennant last week, Palantir shares have continued to trend higher, with gains accelerating following Tuesday’s news.

Importantly, the move occurred with the highest trading volume since mid-November, indicating buying conviction from larger market participants.

While the Relative Strength Index (RSI) confirms bullish price momentum above the 70 threshold, the indicator also points to overbought conditions that could lead to short-term profit-taking.

Let’s apply technical analysis to predict what the stock’s current continuation move could play out, and also identify three key support levels that investors are likely to keep an eye on.

Upward price target to monitor

To predict a potential upside target, investors can use the measurement principle, a chart-based technique that analyzes past price movements to make future forecasts.

When we apply the tool to Palantir’s chart, we measure the distance of the impulsive trend that preceded the pennant in points and add that amount to the upper trendline of the pattern. For example, we add $25 to $64, which gives us a price target of $89.

Key support levels to keep an eye on

For an initial retracement, investors should watch the $58.50 level, an area about 18% below the current share price, where shares may find support near the low of the pennant pattern.

A close below this level could result in a reversal to around $45. Investors could look for buying opportunities in this area near two previous highs that formed on the chart in October before the stock hit its breakaway to the upside in early November.

Finally, a deeper correction could see Palantir shares fall to the lower support level of $38. This region could attract buying interest near the top trendline of a consolidation period that formed on the chart between late September and early October.

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At the time of writing, the author does not own any of the securities mentioned above.