Palantir Stock Surges: Key Price Levels to Watch Amid NATO AI System Deal

Highlights to Know

• Palantir Technologies (PLTR) shares soared nearly 5% on Monday, extending a rebound sparked by NATO's purchase of their AI-driven military analytics system.
• Last week's bullish engulfing candlestick pattern signals growing investor confidence in Palantir’s stock.
• Key resistance levels to monitor include $121 and $300, with strong support zones near $66 and $45 providing potential entry points.

Palantir Technologies experienced a significant boost as NATO finalized a deal to integrate Palantir’s advanced AI-enabled analytics system into their military operations. This partnership alleviates concerns about Europe's dependence on U.S. defense contractors amidst fluctuating trade policies.

Since the start of the year, Palantir’s stock has climbed 22%, though it remains about 25% below its mid-February peak due to uncertainties in military spending and government efficiency initiatives.

Below, we delve into Palantir’s weekly chart to identify pivotal price levels using technical analysis that investors should watch closely.

Bullish Engulfing Pattern Indicates Positive Market Sentiment

After declining nearly 47% from its February high, Palantir’s stock formed a bullish engulfing pattern last week, signaling a shift toward optimism among investors.

This pattern coincided with the Relative Strength Index (RSI) rebounding above the 50 mark, a historically strong indicator of upward momentum in Palantir’s price movements.

We highlight two critical resistance levels and essential support zones to guide investors through potential price fluctuations.

Resistance Levels to Monitor

Palantir closed Monday at $92.62, up 4.6%. The next resistance target sits near $121, close to the stock’s all-time high, where profit-taking may occur.

If Palantir breaks above this peak, it could enter a price discovery phase, potentially rallying toward an ambitious target around $300. This projection is based on bar pattern analysis reflecting previous trends from August to February.

Interestingly, the prior uptrend was also preceded by a bullish engulfing pattern, suggesting a similar trajectory may unfold.

Crucial Support Zones to Watch

On pullbacks, the $66 level is a significant support point that bulls are likely to defend, corresponding with recent lows and historical price action dating back to November.

Should Palantir dip below this, the next major support lies near $45, a level associated with consolidation before last year’s post-election surge, offering potential buying opportunities.

Disclaimer: The information provided is for educational purposes and does not constitute financial advice. Readers should conduct their own research or consult a professional before making investment decisions.

As of this writing, the author holds no positions in Palantir Technologies.

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