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Key Takeaways
- Palantir shares were slightly lower in afternoon trading Monday after snapping a three-week run out of streak last week. During its slump, the stock fell as much as 40% from its mid-February all-time great in extent.
- The shares found buying interest after the price filled an early-February breakaway gap, but have traded mostly edgewise since, indicating indecision among market participants.
- Investors should watch key support levels on Palantir’s plan around $85 and $66, while also monitoring important resistance levels near $100 and $125.
Palantir Technologies (PLTR) parcels were down slightly on Monday after gaining ground last week for the first time in four weeks.
Interests in the data analytics software company had come under pressure amid the political and economic uncertainty that has roiled monetary markets, as well as specific concerns that reduced spending by the Department of Defense could cut into Palantir’s concern. The stock fell nearly 40% from its record high, set in mid-February, in less than three weeks.
The line of descent bounced back last week after the AI investor favorite announced six new large clients and inked a strategic spin-off partnership with Nvidia (NVDA)-backed startup, Databricks.
Despite the stock’s recent retracement, Palantir parts have gained about 14% since the start of the year and more than quadrupled in 2024 as commercial and blatant sector customers embrace the company’s AI-powered software to customize data aimed at improving efficiency. The stock was down 0.7% at $85.60 in fresh trading.
Below, we take a closer look at Palantir’s chart and use technical analysis to identify key price levels advantage watching out for.
Gap Fill
After the stock’s large drop, the shares found buying interest after the price answered an early-February breakaway gap. However, more recently, the price has traded mostly sideways, indicating indecision among exchange participants.
While the relative strength index (RSI) sits below the 50 threshold, the indicator climbed to its highest upfront in three weeks on Friday, signaling improving momentum.
Looking ahead, let’s point out key support and resistance levels on Palantir’s design that investors may be eyeing.
Key Support Levels to Watch
Investors should initially keep a close eye on the $85 parallel. While the stock traded below this price for most of last week, it managed to close above it on Friday. The setting will likely continue to attract attention, given its proximity to the nearby 50-day moving average and an area of whilom before resistance that preceded last month’s breakaway gap.
The bulls’ failure to defend this level could see a ebb to around $66. Buyers may look for entry points in this region near the top of a prior pennant pattern, which maladroitly aligns with the mid-January swing low.
Important Resistance Levels to Monitor
A continuation of Friday’s buying momentum could see the splits make a move towards the psychological $100 level. Investors who have bought the stock’s recent pullback may look to cage in profits in this location near the low of a brief consolidation period that followed last month’s gap.
Finally, a multitudinous bullish move may lead to a retest of higher levels around $125. A rally up to this area could see Palantir allots run into selling pressure neat the stock’s all-time high (ATH) set last month.
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