San Francisco, California – Palantir Technologies (PLTR) shares saw a boost on Tuesday, taking a break from a three-week decline that had caused the AI investor favorite to lose over a third of its market value. The stock has been on a retreat accompanied by increased trading volume, with a bearish trend continuing this week. Investors are advised to keep an eye on key support levels on Palantir’s chart at $66, $44, and $30, while also monitoring key overhead areas near $85 and $121.
As a major software contractor for the U.S. Government, Palantir has faced significant pressure in recent weeks following reports that the Pentagon plans to reduce military spending. The broader tech stock market has also experienced selling pressure due to tariff uncertainty and concerns about a potential recession, impacting investor confidence.
Despite these challenges, some analysts maintain a bullish outlook on Palantir’s future, citing the company’s AI-powered analytics software as a potential beneficiary of efforts by the Trump administration to enhance government efficiency.
Palantir shares rose by 2.2% to close at $78.05 on Tuesday, recovering from a previous session where the stock saw a 10% decline. While the stock has dropped by 38% since reaching a record high three weeks ago, it still remains three times higher than it was a year ago.
Looking at Palantir’s weekly chart, technical analysis points to crucial price levels that investors may be closely monitoring amidst the current market conditions. After signaling a record high with a bearish engulfing pattern last month, Palantir shares have been declining with increased trading volume, indicating ongoing bearish price action.
Despite the recent downturn, the relative strength index (RSI) remains above the key threshold of 50, hinting at potential support levels based on past price movements dating back to early 2023. Investors should keep a close watch on three critical support levels at $66, $44, and $30, while also paying attention to significant overhead areas at $85 and $121 during potential upswings.
In times of market uncertainty and fluctuations, being informed about key price levels and market trends can help investors make more informed decisions about their investment strategies. It is important to consider various factors that may impact a stock’s performance and use technical analysis to identify potential support and resistance levels.
As of the writing of this article, the author does not hold any of the securities mentioned above. The comments, opinions, and analyses presented are solely for informational purposes and should not be considered as financial advice.