Shares in Palantir Technologies (PLTR) were down in premarket trading Wednesday after falling sharply yesterday, as the stock continues to retreat from its 澳洲幸运5官方开奖结果体彩网:record high set in late December.

Recent selling in the shares comes after investment bank Morgan Stanley initiated coverage on the stock earlier this week with an “澳洲幸运5官方开奖结果体彩网:underweight” rating and reports surfaced that Cathie Wood’s ARK Investment Management tech funds had sold shares in the company.

The analytics software provider had a stellar 2024, ending the year as the 澳洲幸运5官方开奖结果体彩网:S&P 500’s best performing stock. Its shares more than quadrupled, boosted by growing demand for its suit of 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) software products.

Palantir shares were down 2% at around $68.50 in recent premarket trading, after falling nearly 8% on Tuesday. Through yesterday's close, the stock was down 18% from its Dec. 24 all-time high.

Below, we take a closer look at Palantir’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify key price levels worth watching out ܫfor.

Rising Wedge Pattern Breakdown

Palantir shares broke down from a 澳洲幸运5官方开奖结果体彩网:rising wedge in late December before retesting the pattern’s lower trendline earlier this month. However, since that time the stock has faced renewed selling pressure, though 澳洲幸运5官方开奖结果体彩网:trading volumes remain lackluster.

Meanwhile, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms weaking price momentum, dropping below the key 50 🐠threshold for the first time since early August 🌠last year.

Let’s point out three crucial 澳洲幸运5官方开奖结果体彩网:support levels where the shares may encounter buying interest amid further selling and also identify a major 澳洲幸运5官方开奖结果体彩网:resistance area to watch during potential upswings.

Crucial Support Levels to Watch

Firstly, investors should monitor how the stock responds to the $66 level. This location on the chart finds a trifecta of support from the mid-November peak, the 澳洲幸运5官方开奖结果体彩网:50-day moving average, and the nearby 38.2% 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement level when applying a grid from the late Octo✃ber low to the D🧔ecember high.

Selling below this level could see the shares retrace to around $59, a location where investors may seek 澳洲幸运5官方开奖结果体彩网:entry points below a 澳洲幸运5官方开奖结果体彩网:pennant pattern that formed on the chart in mid-November.

A deeper 澳洲幸运5官方开奖结果体彩网:correction in the stock could trigger a gap fill down to the $45 level, about 35% below Tuesday's closing price. The shares would 𒅌likely attract buying interest in this area near two twin peaks that emerged on the chart during October.

Major Resistance Area to Monitor

Upon a share price recovery and resumption of the longer-term uptrend, investors should monitor the $81 area. Raꦏllies into this region could meet significant overhead resistance near a range of peaks positioned just below the stock’s record high.

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