Palantir Stock Climbs Over 6% to New Heights: Watch These Crucial Price Points

Top Insights

• Palantir shares soared more than 6% recently, reaching unprecedented levels fueled by positive outlooks from Ark Invest highlighting the company's growth potential in the AI sector.
• Since breaking out from an ascending triangle pattern in early July, Palantir has maintained an upward trajectory except for a minor correction in early August, with momentum accelerating post its inclusion in the S&P 500 index.
• Investors should monitor critical support zones near $32.70, $29, and $25.50 during any pullbacks to identify strong entry points.
• Technical analysis using a bars pattern indicates a prospective bullish target near $55, reflecting Palantir’s sustained upward trend from last year.

Palantir Technologies (PLTR) continues to capture investor attention after its shares hit record highs, driven by bullish commentary from Ark Invest regarding the company’s promising role in the expanding artificial intelligence (AI) landscape.

Rahul Bhushan, European managing director at Ark Invest, shared with CNBC that data analytics firms like Palantir are well-positioned to gain market share from tech giants as demand surges for tailored AI and data solutions.

On the recent surge, Palantir’s stock climbed 6.6% to $41.45, marking a 141% gain year-to-date and a nearly 37% increase in the past month, boosted by its S&P 500 inclusion.

Below is a detailed technical overview highlighting pivotal price levels that investors should watch closely.

Ongoing Uptrend Momentum

Following a breakout above an ascending triangle in early July, Palantir’s stock has steadily risen, aside from a brief correction in early August. The rally intensified last month after joining the S&P 500 index.

Notably, heightened trading volumes during this rally suggest strong institutional buying interest.

However, short-term profit-taking could occur as the Relative Strength Index (RSI) signals overbought conditions and shows bearish divergence with price action.

Let’s examine three key support levels and forecast potential bullish targets using technical analysis.

Key Support Zones to Monitor

During any retracement, the $32.70 level is crucial, just below the rising 50-day moving average, aligning with the August swing high and the September 9 gap opening price, likely providing solid support.

If the stock dips below $32.70, the next support lies near $29, where a trendline connecting the July peak and September low may attract buyers.

A deeper pullback could test the $25.50 area, corresponding to the ascending triangle’s upper trendline, which has transitioned from resistance to support, offering a potential entry point.

Projected Bullish Price Target

Using a bars pattern technique, which analyzes past price movements to predict future trends, we map Palantir’s upward trend from May to August last year onto the recent early August low.

This projection suggests a bullish price target near $55, reflecting a continuation of the current uptrend initiated from a similar ascending triangle breakout.

Disclaimer: The views expressed are for informational purposes only and do not constitute financial advice. Please review our warranty and liability disclaimer for details.

At the time of writing, the author holds no positions in the securities mentioned.

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