Palantir stock price levels to watch after earnings rise

Palantir (PLTR) shares traded sharply higher Monday in extended trading after the analytics software provider beats third quarter estimates and lifted the full year gain prospects amid robust demand for it artificial intelligence (AI) offers.

The company pointed specifically to AI demand from government and commercial customers, adding that it expects the rapid adoption of its platforms and AI capabilities to drive future growth. Shares of Palantir have more than doubled year-to-date as of Monday’s close, boosted in part by the stock’s recent declines. inclusion in the big cap S&P500 index.

Palantir shares rose 14% to $47.09 in after-hours trading on Monday.

Below we analyze the technology on Palantir’s chart and identify key post-earnings price levels to pay attention to.

Widening of the formation breakout

Since the outbreak above a flag pattern in early September, Palantir shares were sharply higher about a month earlier consolidate within one widening formation.

In the run-up to the company’s quarterly results, sellers switched to the stock, but bulls successfully defended the formation’s lower trendline, with trading volume recorded the highest level since early October on Monday.

Amid the stock’s expected earnings-driven breakout above the broader formation on Tuesday, let’s identify some key overhead levels that investors may be looking at and point to an important support zone to be monitored during periods of profit taking.

Key overhead levels to keep an eye on

The former sits around $45. While the stock is poised to open above this level on Tuesday, it is worth watching for a close above this price, located near the share price. all-time high (ATH) and the upper trend line of the widening formation.

To project an overhead price target above the stock’s ATH we can use a bar pattern, a charting technique that uses prior price promotion to predict future movements. In this case, we take Palantir’s trend move from September to October and overlay it on the lower trendline of the widening formation, which predicts a price target of around $60.

We selected this previous trend because it starts from the lower trendline of a consolidation pattern – the flag – and included a double-digit percentage jump early in the move, potentially rhyming with how an earnings-driven rally in the stock might play out.

Key support zone to monitor

During profit-taking periods, investors should keep a close eye on a support zone between $41 and $38, where the stock could attract buying interest from the lower trendline of the widening formation and the September price. peak.

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