Shares Have More Than Doubled This Year
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Palantir shares jumped in extended trading on Monday after the analytics software provider topped third-quarter earnings estimates and lifted its full-year revenue outlook amid robust demand for its AI offerings.
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The stock had consolidated within a broadening formation leading into the company’s quarterly results, but bulls have successfully defended the pattern’s lower trendline, with trading volume registering its highest level since early October on Monday.
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Investors should watch key overhead levels on Palantir’s chart around $45 and $60, while also monitoring an important zone of support during periods of profit-taking between $41 and $38.
Palantir (PLTR) shares traded sharply higher in extended trading on Monday after the analytics software provider topped third-quarter estimates and lifted its full-year revenue outlook amid robust demand for its artificial intelligence (AI) offerings.
In particular, the company pointed out AI demand from government and commercial customers, adding that it expects the rapid adoption of its platforms and AI capabilities to drive future growth. Palantir shares have gained more than two-fold since the start of the year as of Monday’s close, boosted in part by the stock’s recent inclusion into the large cap S&P 500 index.
Palantir shares gained 14% to $47.09 in after-hours trading Monday.
Below, we analyze the technicals on Palantir’s chart and identify important post-earnings price levels to watch out for.
Since breaking out above a flag pattern in early September, Palantir shares trended sharply higher for about a month before consolidating within a broadening formation.
Leading into the company’s quarterly results, sellers moved into the stock, but bulls successfully defended the formation’s lower trendline, with trading volume registering its highest level since early October on Monday.
Amid the stock’s projected earnings-driven breakout above the broadening formation on Tuesday, let’s identify several key overhead levels investors may be watching and point out an important zone of support to monitor during periods of profit-taking.
The first sits around $45. Although the stock sits 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 broadening formation’s top trendline.
To project an overhead price target above the stock’s ATH, we can use a bars pattern, a chart technique that uses prior price action to predict future moves. In this case, we take Palantir’s trending move from September to October and overlay it from the broadening formation’s lower trendline, which forecasts a target of around $60.
