Palantir shares jumped 7% on Tuesday after the company announced that its entire product suite has received approval for use in processing sensitive federal workloads. This move positions Palantir to provide an array of services to government entities, boosting sentiment for the stock.
The news also comes as Barron’s reported that Palantir remains a top contender to join the Nasdaq 100 after transferring its Class A common stock from the New York Stock Exchange (NYSE) to the Nasdaq last month. This has led to significant price gains, with shares reaching an all-time high of $71.37 during Tuesday’s trading session.
Technical analysis shows that Palantir shares have continued their upward trend since breaking out from a pennant pattern last week. The relative strength index (RSI) confirms bullish momentum above 70, but also flashes overbought conditions, which may lead to short-term profit-taking.
To forecast potential upside targets, the measuring principle can be applied. By analyzing prior price moves and adding a calculated distance to the upper trendline, investors can project a potential price target of $89.
However, investors should watch important support levels on Palantir’s chart around $58.50, $45, and $38. A close below these levels could lead to a reversal down to lower supports, making these regions crucial for buying opportunities.
Key Takeaways:
* Palantir shares jumped 7% after receiving federal approval for analytics software.
* The company’s entire product suite has been approved for sensitive federal workloads.
* Sentiment is boosted by Barron’s report on Palantir joining the Nasdaq 100.
* Technical analysis suggests a potential upside target of $89 and key support levels around $58.50, $45, and $38.
Source: https://www.investopedia.com/palantir-price-levels-to-watch-as-stock-jumps-to-new-all-time-high-8754955