Key Takeaways
\nPalantir shares closed at a record high on Tuesday after the data analytics software provider posted quarterly revenue that surpassed $1 billion for the first time and raised its full-year outlook, driven by robust demand for its AI platform.The stock broke out above the top trendline of a rising wedge pattern in Tuesday\u2019s trading session, indicating strong price momentum.The measured move technique projects an upside price target of $201.30. Investors should also watch crucial support levels on Palantir’s chart around $148, $125 and $98.<\/p>\n
Palantir Technologies (PLTR<\/a>) shares\u00a0jumped Tuesday after the data analytics software provider raised its full-year outlook amid booming demand for its AI platform.\u00a0\n<\/p>\n The company posted quarterly revenue that surpassed $1 billion for the first time<\/a>, topping Wall Street estimates, and now expects full-year revenue of between $4.14 billion and $4.15 billion, up from $3.89 to $3.9 billion\u00a0previously<\/a>. CEO Alex Karp said Palantir’s commercial business nearly doubled from a year earlier, while its U.S. business grew 68%, which he attributed to “the astonishing impact of AI leverage.”\n<\/p>\n Following the company\u2019s blowout results, investment banks Bank of America, Morgan Stanley, and Deutsche Bank raised their price targets on Palantir shares<\/a>. The stock rose nearly 8% to $173 on Tuesday and has gained about 600% over the past year. The stock has been boosted by the company\u2019s increasing business with the federal government<\/a> and surging enterprise demand for its AI-powered tools.\u00a0\n<\/p>\n Below, we break down the technicals<\/a> on Palantir\u2019s chart and identify key price levels that investors will likely be watching.\n<\/p>\n Rising Wedge Breakout <\/p>\n Palantir shares broke out above the top trendline of a rising wedge<\/a> in Tuesday\u2019s trading session. While this chart pattern often signals a potential trend reversal, a bullish breakout<\/a> indicates strong price momentum\n<\/p>\n Moreover, the relative strength index <\/a> confirms bullish price action<\/a>, though it also flashes overbought<\/a> conditions, increasing the likelihood of near-term profit taking.\n<\/p>\n Let\u2019s apply technical analysis<\/a> to Palantir\u2019s chart to project an upside target if the shares continue their move into price discovery<\/a> and also identify support levels<\/a> worth monitoring during possible retracements in the stock.\n<\/p>\n Measured Move Upside Price Target <\/p>\n Investors can project an upside target in Palantir shares by using the measured move technique, also known by chart watchers as the measuring principle<\/a>.\n<\/p>\n When applying the analysis, we calculate the percentage change of the rising wedge near its widest point and add it to the pattern\u2019s top trendline value. For example, we apply a 22% increase to $165, which projects a target of $201.30.\n<\/p>\n Crucial Support Levels Worth Monitoring <\/p>\n During retracements in the stock, it\u2019s initially worth monitoring the $148 level. Profit-taking down to this area, currently just below the rising wedge pattern\u2019s lower trendline, could attract buying interest near the June peak<\/a>.\n<\/p>\n A decisive close below this level could see the shares retreat to around $125. This location may provide support near the prominent February swing high<\/a> and a period of sideways drift<\/a> that formed on the chart during May and June.\n<\/p>\n Finally, further selling opens the door for Palantir shares testing lower support at $98. Investors may look for entry points<\/a> in this region near the closely watched 200-day moving average<\/a>, the March countertrend<\/a> peak, and the top of a flag pattern that formed on the chart in mid-April.\n<\/p>\n