Watch These Palantir Price Levels as Stock Hits Another All-Time High

Palantir Technologies (PLTR) shares hit another record high on Monday, as the AI-powered analytics software provider benefits from investor optimism about its expanding business with the federal government.

The government has integrated a Palantir product called Foundry into at least four agencies, including the Department of Homeland Security and the Health and Human Services Department, The New York Times reported Friday. Officials at the Social Security Administration and Internal Revenue Service have also had discussions with Palantir about buying its technology, the report said.

Palantir shares rose 0.2% to close Monday at just above $132, after surging nearly 8% the previous session to a record high. The stock has doubled since hitting its early-April low and is up 75% since the start of the year, as investor enthusiasm for AI stocks has recovered lately and investors bet that Palantir will be a prime beneficiary of the government’s efficiency drive.

Below, we take a closer look at Palantir’s chart and use technical analysis to point out crucial price levels worth watching out for.

Pennant Pattern Breakout

After reaching last month’s peak, Palantir shares consolidated in a pennant pattern, indicating a continuation of the stock’s longer-term uptrend.

Indeed, the price staged a volume-backed breakout above the pattern in Friday’s trading session, paving the way for higher prices this week. Moreover, while the relative strength index confirms bullish momentum, the indicator remains below overbought levels, providing ample room for the price to test higher prices.

Let’s apply bars pattern analysis to forecast where Palantir shares may be headed next and also identify crucial support levels to eye during potential pullbacks.

Bars Pattern Analysis

To predict how the stock’s trend may play out, investors can use bars pattern analysis, a technique that analyzes prior price action to forecast future directional movements.

When applying the analysis to Palantir’s chart, we extract the price bars comprising the trend higher that proceeded the pennant and overlay them from the pattern’s breakout point. This projects a bullish target of around $220 and indicates the move higher may last until early July if it rhymes with the earlier uptrend.

Crucial Support Levels to Eye During Pullbacks

The first lower level to eye sits around $125. This area may provide support near the early-May high, which also closely aligns with the stock’s prominent November peak.

A breakdown below this level could see the shares retrace toward $97. The price may encounter buying interest at this location near a brief period of consolidation in mid-April sitting alongside the March swing high.

Finally, further selling in Palantir shares may lead to a retest of lower support at the $83 level. Investors could seek entry points in this region near a trendline that links a range of corresponding trading activity on the chart between December and April.

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As of the date this article was written, the author does not own any of the above securities.