Key takeout
Stock in Palantir Technologies (PLTR) reached another record high on Monday as AI-powered analytics software providers benefit from investor optimism about expanding their business with the federal government.
The government has integrated Palantir products, known as foundries, into at least four agencies, including the Department of Homeland Security and the Department of Health and Human Services, the New York Times reported Friday. Officials from the Social Security Administration and Internal Revenue Service are also discussing with Palantir about purchasing the technology, the report said.
Palantir shares closed above $132 on Monday, rising 0.2%. Stocks doubled in the first half of April, up 75% since the start of the year as investors bounced back to AI stocks, with investors betting that Palantir will become a major beneficiary of government efficiency.
Below we take a closer look at Palantir’s chart and use technical analysis to point out key pricing levels that are worth paying attention to.
Pennant Pattern Breakout
After peaking last month, Palantir has been integrated in a pennant pattern, indicating a continuation of the long-term uptrend in the stock.
Certainly, prices staged a breakout volume back on top of the pattern during Friday trading session, paving the way for higher prices than this week. Additionally, the relative strength index confirms bullish momentum, but the indicators are below the level that was bought.
Apply Bars pattern analysis to predict that Palantir strains are heading next and identify key support levels during potential pullbacks.
Bar Pattern Analysis
To predict how stock trends will work, investors can use bar pattern analysis. This is a technique that analyzes previous price actions to predict future directional motion.
Applying analysis to Palantir’s charts extracts the price bars that make up the trend that has advanced pennants and overlays them from breakout points in the pattern. This suggests that if you predict a bullish target of around $220 and rhyme with previous upward trends, higher movements could continue until early July.
Important level of support for eyes during pullback
The first lower level of the eye is about $125. The area could potentially provide support near the highs of early May.
A breakdown below this level will raise the stock to $97. Prices may be encountered in the mid-April near the short integration period sitting along swing high in March, and purchases at this location.
Finally, further sales of Palantir stock could lead to a retest of lower support at the $83 level. Investors can search for entry points for this region near trendlines linking various corresponding trading activities on the chart between December and April.
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As of the date this article was written, the author does not own the above securities.
