Palantir Technologies shares experienced a recovery on Monday, bouncing back after a significant sell-off late last week. The tech company announced a new partnership with Accenture to enhance its services for the federal government, which appears to have instilled confidence in investors. Following a 9% decline on Friday, the shares gained over 4% on Monday, indicating a positive turnaround.
The recent dip coincided with the heaviest trading volume since late February, raising concerns among investors. However, the relative strength index (RSI) showed signs of improvement on Monday, reclaiming its neutral threshold, hinting at potential stabilization.
Technical analysis highlights several crucial price levels to watch for investors in Palantir. The first support level is around $125, which aligns with the upward sloping 50-day moving average (MA) and a significant trendline. A fall below this point could signal further declines towards $97, where buying opportunities may arise given its historical significance. Lastly, if the drop continues, the $83 level is another critical point that coincides with the 200-day MA and could attract bids from investors.
On the upside, the key resistance level to monitor lies at $148, near the stock’s previous record high. This zone could prompt tactical traders to lock in profits if the stock starts to surge again.
Overall, Palantir’s stock has more than doubled since its early April low and remains buoyed by positive sentiment surrounding artificial intelligence and government efficiency initiatives. With careful monitoring of these technical levels, investors may find opportunities for strategic moves in both bullish and bearish market conditions.