Shares have more than doubled this year
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Shares of Palantir rose in extended trading Monday after the analytics software provider beat third-quarter profit expectations and raised its full-year revenue guidance amid robust demand for its AI offerings.
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The stock had been consolidated within a broader formation leading up to the company’s quarterly results, but bulls have successfully defended the pattern’s lower trendline, with trading volume on Monday registering the highest level since early October.
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Investors should keep an eye on key overhead levels on the Palantir chart around $45 and $60, while also keeping an eye on a key support zone during profit-taking periods between $41 and $38.
Palantir (PLTR) shares traded sharply higher in extended trading on Monday after the analytics software provider beat third-quarter estimates and raised its full-year revenue guidance amid robust demand for its artificial intelligence (AI) offerings.
The company pointed specifically to AI demand from government and commercial customers, adding that it expects the rapid adoption of its platforms and AI capabilities to drive future growth. Shares of Palantir have more than doubled year-to-date as of Monday’s close, boosted in part by the stock’s recent inclusion in the large-cap S&P 500 index.
Palantir shares rose 14% to $47.09 in after-hours trading on Monday.
Below, we analyze the technical data on Palantir’s chart and identify key post-earnings price levels to pay attention to.
Since breaking out above a flag pattern in early September, Palantir shares rose sharply for about a month before consolidating within a widening formation.
Ahead of the company’s quarterly results, sellers piled into the stock, but bulls successfully defended the formation’s lower trendline, with trading volume on Monday recording its highest level since early October.
Amid the stock’s expected earnings-driven breakout above the broader formation on Tuesday, let’s identify some key overhead levels that investors may be looking at and point out a key support zone to keep an eye on during profit-taking periods.
The former sits around $45. While the stock is poised to open above this level on Tuesday, it’s worth watching for a close above this price, located near the stock’s all-time high (ATH) and the upper trend line of the widening formation.
To project an overhead price target above the stock’s ATH, we can use a bar pattern, a charting technique that uses past price action to predict future moves. In this case, we take Palantir’s trend move from September to October and overlay it on the lower trendline of the widening formation, which predicts a price target of around $60.
