Palantir Technologies (PLTR) shares hit another record high on Monday, as the AI-powered analytics software provider benefits from investor optimism about its expanding business withಌ the federal gover🌠nment.

The government has integrated a Palantir product called Foundry into at least four agencies, including the Department of Homeland Security and the 澳洲幸运5官方开奖结果体彩网:Health and Human🦂 Services Department, The New York Times reported Friday. Officials at the 澳洲幸运5官方开奖结果体彩网:Social Security Administration and 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service have also had discussions with Palantir about buying its technology, the report said.

Palantir shares rose 0.2% to close Monday at just above $132, after 澳洲幸꧂运5官方开奖结果体彩网:surging nearly 8% the previous session to a record high. The stock has doubled since hitting its early-April low and is up 75% since the start of the year, a൩s investor enthusiasm for AI stocks has recovered lately and investors bet that Palantir will be a prime beneficiary of the government's efficiency drive.

Below, we take a closer look at Palantir’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to ꧙point out crucial price levels worth watching out for.

Pennant Pattern Breakout

After reaching last month’s peak, Palantir shares consolidated in a 澳洲幸运5官方开奖结果体彩网:pennant pattern, indicating a 澳洲幸运5官方开奖结果体彩网:continuation of the stock’s longer-term uptrend.

Indeed, the price staged a volume-backed breakout above the pattern in Friday’s trading session, paving the way for higher prices this week. Moreover, while the 澳洲幸运5官方开奖结果体彩网:relative strength index confirms bullish momentum, the indicator remains below overbought levels, providing ample room for th🍎e price to test higher prices.

Let’s apply bars pattern analysis to forecast where Palantir shares may be headed next and also identify crucial 澳洲幸运5官方开奖结果体彩网:support levels to eye during potential 澳洲幸运5官方开奖结果体彩网:pullbacks.

Bars Pattern Analysis

To predict how the stock’s trend may play out, investors can use bars pattern analysis, a technique that analyzes prior 澳洲幸运5官方开奖结果体彩网:price action to forecast future directional movements.

When applying the analysis to Palantir’s chart, we extract the price bars comprising the trend higher that proceeded the pennant and overlay them from the pattern’s breakout point. This projects a bullish target of around $220 and indicates the move higher may last until early July if it rhymes with theꦯ earlier uptrend.

Crucial Support Levels to Eye During Pullbacks

The first lower level to eye sits around $125. This area may provide support near the early-May high, which also closely aligns with the stock’s prominent November peak.

A 澳洲幸运5官方开奖结果体彩网:breakdown below this level could see the shares retrace toward $97. The price may encounter buying interest at this location near a brief period of 澳洲幸运5官方开奖结果体彩网:consolidation in mid-April sitting alongside the March 澳洲幸运5官方开奖结果体彩网:swing high.

Finally, further selling in Palantir shares may lead to a retest of lower support at the $83 level. Investors could seek 澳洲幸运5官方开奖结果体彩网:entry points in this region near a trendline that links a range of corresponding trading ꦅactivity on the chart b𝓰etween December and April.

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