Key takeout
- Palantir’s stock reached an all-time high for the second consecutive day on Monday, as AI-based analytics companies attract investor enthusiasm about their growing government contracts.
- The stocks saw a significant move past the pennant pattern during trading on Friday, indicating potential for continued gains this week.
- Bar pattern analysis suggests a bullish target around $220, hinting that the upward trend could persist into early July.
- Key support levels for Palantir’s stock are identified at $125, $97, and $83.
Palantir Technologies (PLTR) saw its shares hit another record on Monday, fueled by optimism surrounding AI-driven analytics firms looking to expand their business with the federal government.
The U.S. government has incorporated Palantir’s Foundry software in several agencies, including the Department of Homeland Security and the Department of Health and Human Services, as recently reported. Furthermore, discussions are ongoing between Palantir and officials from the Social Security Administration and Internal Revenue Service regarding potential purchases of the technology.
On Monday, Palantir shares closed at just over $132, marking a slight increase of 0.2%. The stock has surged notably—up 75% since the beginning of the year—as investors are returning to AI stocks, anticipating Palantir as a key player in enhancing government efficiency.
Let’s delve into Palantir’s stock chart and highlight some important price levels to keep an eye on.
Pennant Pattern Breakout
Following a peak last month, Palantir has formed a pennant pattern, signifying a continuation of its long-term uptrend.
Indeed, the stock experienced a notable breakout during Friday’s session, setting the stage for higher prices this week. The relative strength index supports this bullish trend, although it’s currently below previous buying levels.
Using bar pattern analysis, we can forecast where Palantir’s stock might head next and pinpoint crucial support levels for potential pullbacks.
Bar Pattern Analysis
Investors can apply bar pattern analysis to gauge stock trends, focusing on past price actions to foresee future movements.
This technique can be applied to Palantir’s charts, layering the price bars from the trend and breakout points on the pennant. This analysis hints at a bullish target around $220, aligned with previous upward trends, suggesting that gains could continue through early July.
Important support levels to monitor during pullbacks
The first significant support level to note is approximately $125, which may offer support aligned with early May’s highs.
If the stock breaks below this point, it could then target around $97, a price level seen in mid-April, which corresponds with swing highs from March.
Moreover, further declines could bring Palantir stock down to a retest of the $83 support level. Investors should look for entry points in this region, where various trading activities from December to April might connect.
