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Palantir shares moved lower in premarket trading Wednesday after falling sharply yesterday, because the stock continues to retreat from its record high set in late December.
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Recent selling comes after investment bank Morgan Stanley initiated coverage on the stock with an “underweight” rating and reports surfaced that Cathy Wood’s ARK Investment Management tech funds had sold shares in the corporate.
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The stock broke down from a rising wedge in late December and has recently found renewed selling pressure on a retest of the pattern’s lower trendline.
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Investors should watch crucial support levels on Palantir’s chart around $66. $59, and $45, while also monitoring a serious resistance area near $81.
Shares in Palantir Technologies (PLTR) were down in premarket trading Wednesday after falling sharply yesterday, because the stock continues to retreat from its record high set in late December.
Recent selling within the shares comes after investment bank Morgan Stanley initiated coverage on the stock earlier this week with an “underweight” rating and reports surfaced that Cathie Wood’s ARK Investment Management tech funds had sold shares in the corporate.
The analytics software provider had a stellar 2024, ending the 12 months because the S&P 500’s best performing stock. Its shares greater than quadrupled, boosted by growing demand for its suit of 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 more in-depth take a look at Palantir’s chart and apply technical evaluation to discover key price levels price watching out for.
Palantir shares broke down from a rising wedge in late December before retesting the pattern’s lower trendline earlier this month. Nevertheless, since that point the stock has faced renewed selling pressure, though trading volumes remain lackluster.
Meanwhile, the relative strength index (RSI) confirms weaking price momentum, dropping below the important thing 50 threshold for the primary time since early August last 12 months.
Let’s indicate three crucial support levels where the shares may encounter buying interest amid further selling and in addition discover a serious resistance area to look at during potential upswings.
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 50-day moving average, and the nearby 38.2% Fibonacci retracement level when applying a grid from the late October low to the December high.