Watch These Palantir Price Levels As Shares Rise After Outlook Raise

Palantir Technologies (PLTR) shares rose in evening trading Monday after the data analytics company beat Wall Street’s quarterly estimates and raised its full-year outlook on strong demand for its artificial intelligence (AI) software services.

The company’s shares are up more than 40% year to date, driven by a growing number of enterprise customers who use the Colorado-based company’s AI platform to test, debug and evaluate AI-related systems.

Palantir shares rose 12% to $27.02 in after-hours trading on Monday.

Below, we’ll take a closer look at Palantir’s technical data and highlight important price levels to watch out for as the company’s fortunes change following its earnings announcement.

Pre-Results Inversion

Palantir stock has been steadily rising since carving out an inverted head-and-shoulders pattern between September 2022 and May of last year. While the stock recently pulled back, buyers have stepped in to defend the price around its 200-day moving average and April swing low ahead of the company’s quarterly results.

While the stock was not immune to Monday’s sell-off, it posted an impressive intraday move on its highest trading volume since early May and closed at an intraday high after initially opening 12% lower, indicating that larger market participants could expect a big earnings-driven move.

Monitor these price levels when shopping after the results are announced.

Looking ahead, investors should monitor key chart areas where Palantir stock could face selling pressure on a post-earnings rally.

The first one is in the $27-$29 range, where the stock could encounter a resistance zone marked by two trend lines connecting multiple highs dating back to December 2020.

A close above this level could trigger an upside move towards $39, an area where sellers may be happy to take profits near the February 2021 high that formed at the beginning of the stock’s two-year downtrend between 2021 and 2023.

A more bullish move could see a retest of the $45 level, where the price will likely encounter resistance near its all-time high reached in late January 2021.

Finally, we can forecast a target above the All-Time High (ATH) using a bar pattern by analyzing the stock’s past movement trends. In this case, if we isolate the uptrend from May to August last year and apply it to the swing low in April, we can forecast a price target of around $50.50.

Comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Please read our disclaimer for more information.

As of the date of this writing, the author does not own any of the above securities.