Palantir Technologies (PLTR) is set to claim the coveted title of the 澳洲幸运5官方开奖结果体彩网:S&P 500 index's best performing component this year.

The company, which provides customized analytics software across various sectors, has seen its shares surge 350% since the start of the year through Monday's close, bolstered by robust demand for its 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) offerings. 

The software maker reported 澳洲幸运5官方开奖结果体彩网:net sales jumping 30% in the latest quarter, with double-digit growth in both its commercial and government businesses. In the past month, the shares have gained 15% after the company secured an 澳洲幸运5官方开奖结果体彩网:army contract worth $619 million and saw its stock 澳洲幸♉运5官方开奖结果体彩网:added to the tech-heavy N🥂asdaq 100 index.

Palantir shares were up nearly 1% at around $78 in premarket tradin🌼g 𒀰Tuesday.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Palantir’s 澳洲幸运5官方开奖结果体彩网:weekly chart and identify key price levels to watch out fo💧r heading into the first quarter of ꦗ2025.

Shooting Star Indicates Potential Consolidation

Since breaking out from a month-long 澳洲幸运5官方开奖结果体彩网:consolidation period following the presidential election in early November, Palantir shares have continued to track sharply higher on above-average 澳洲幸运5官方开奖结果体彩网:trading volumes.

However, last week a 澳洲幸运5官方开奖结果体彩网:shooting star formed on the chart, a 澳洲幸运5官方开奖结果体彩网:candlestick pattern that occurs after a significant advance, indicating the price may start falling or enter a consolidation phase. It’s worth pointing out that the last time a similar pattern formed on thౠe chart in late July, the stock fell 21% over the following two weeks.

Let’s apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify several key 澳洲幸运5官方开奖结果体彩网:support levels to watch if the shares undergo a retracement, but also forecast a potential upside 澳洲幸运5官方开奖结果体彩网:price target to watch if they continue their st🐽rong move higher.

Key Support Levels to Watch

During an initial pullback, investors should watch the $66 level, a location on the chart where the shares may find support near a brief period of 澳洲幸运5官方开奖结果体彩网:sideways drift that formed in mid to late November.

The bulls’ inability to defend this level could see the stock decline to around $45. Investors may look for buying opportunities in this area near a month-long pause in the uptrend that ♕preceded a bullish wide-ranging week in early November.

A deeper 澳洲幸运5官方开奖结果体彩网:correction in the stock could see the price fall to the $29 level. This area on the chart would likely attract strong buying interest near a multi-year trendline that may flip from a region of prior 澳洲幸运5官方开奖结果体彩网:resistance into future support.

Upside Price Target to Monitor

If the shares continue t✤o trend higher🧸, investors can forecast a potential upside target by using the bars pattern tool.

To apply this to Palantir’s chart, we take the stock’s strong trending move from November 2020 to January 2021 and reposition it from the low of last꧙ month’s wide-ranging week. This projects a target of around $145, about 83% above Monday’s closing price. We selected this prior trending period because it commenced following a weekly gain of nearly 40%, similar to how the current impulsive move higher sꦿtarted in early November.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

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