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Shares of Palantir rose Tuesday after the analytics software provider announced that its entire product suite has received approval for use in processing sensitive federal workloads, allowing the company to provide a range of services to government agencies.
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Since breaking a pennant last week, Palantir shares have continued to rise, with gains accelerating after Tuesday’s news.
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While the relative strength index confirms bullish price momentum above the 70 threshold, the indicator also points to overbought conditions that could lead to near-term profit-taking.
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The measurement principle, which calculates the distance of the impulsive trend that preceded the pennant and adds that amount to the upper trendline of the pattern, predicts an upside price target for the stock of $89.
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Investors should pay attention to key support levels on Palantir’s chart around $58.50, $45, and $38.
Palantir (PLTR) shares are likely to remain in focus after Tuesday’s jump following news that the analytics software provider’s entire product suite has received approval for use in processing sensitive federal workloads, allowing the company to provide a range of services to government agencies.
Sentiment for the stock may also have received a boost afterwards Barrons reported that the software maker remains one of the leading candidates to join the Nasdaq 100 as the tech-heavy index undergoes its annual reconstruction after the company last month transferred the listing of its Class A common stock to the Nasdaq from the New York Stock Exchange (NYSE). .
Shares of Palantir rose nearly 7% to close Tuesday at just under $71, after hitting an all-time high of $71.37 during the session. The stock has more than quadrupled since the beginning of the year, reflecting growing demand for the company’s customizable artificial intelligence (AI) software solutions.
Below we provide an overview of the technical features of Palantir’s chart and point out important price levels worth paying attention to.
Since a textbook pennant breakout last week, Palantir shares have continued to rise, with gains accelerating after Tuesday’s news.
Importantly, the move occurred on the highest trading volume since mid-November, indicating that larger market participants have been buying.
While the relative strength index (RSI) confirms bullish price momentum above the 70 threshold, the indicator also signals overbought conditions that could lead to short-term profit-taking.
Let’s apply technical analysis to project how the stock’s current continuation move may develop and also identify three key support levels that investors are likely to look at.
