Watch These Palantir Price Levels as Stock Jumps After Guidance Boost

Palantir Technologies (PLTR) shares jumped in extended trading on Monday after the data analytics company topped Wall Street’s quarterly estimates and raised its full-year outlook amid strong demand for its artificial intelligence (AI) software services.

The shares have gained more than 40% since the start of the year, benefiting from a growing number of enterprise customers turning to the Colorado-based company’s AI platform to test, debug, and evaluate AI-related systems.

Palantir shares rose 12% to $27.02 in after-hours trading Mondday.

Below, we take a closer look at Palantir’s technicals and identify important price levels to watch out for following the company’s expected post-earnings move.

Pre-Earnings Reversal

Palantir shares have trended steadily higher since carving out an inverse head and shoulders pattern between September 2022 and May last year. Although the stock has recently undergone a pullback, buyers stepped in to defend the price around the 200-day moving average and the April swing low ahead of the company’s quarterly results.

While the shares weren’t immune to Monday’s sell-off, they staged an impressive intraday reversal on the highest trading volume since early May to close towards their high of the day after initially opening 12% lower, indicating larger market participants may have anticipated a big earnings-driven move.

Monitor These Price Levels Amid Post-Earnings Buying

Looking ahead, investors should monitor these key chart areas where Palantir shares could face selling pressure amid a post-earnings pop.

The first sits between $27 and $29, a location where the shares could run into a zone of resistance from two trendlines connecting multiple swing highs extending as far back as December 2020.

A close above this level could see a move up to the $39 level, an area where sellers may be happy to lock in profits near the February 2021 swing high, which formed at the start of a two-year down trending period in the stock between 2021 and 2023.

A more bullish move may lead to a retest of the $45 region, where the price would likely encounter resistance around its record high set-in late January 2021.

Finally, we can forecast a target above the all-time high (ATH) using a bars pattern by analyzing prior trending moves in the stock. In this case, if we extract the bullish period from May to August last year and apply it from the April swing low, we can project a price target of around $50.50.

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