Palantir Technologies (PLTR) continues to capture investor attention after a strong rally fueled by AI optimism, notably its integration of Grok, the chatbot from Elon Musk’s xAI. The stock has surged nearly 50% year-to-date (YTD) and an astonishing 370% over the past 12 months, benefiting from rising demand for its AI-driven analytics software.
With multiple analysts raising their price targets, let’s analyze the technical setup and key levels that traders and investors should watch in the coming months.
Breakout from Rectangle Formation
PLTR shares decisively broke out from a rectangle pattern last week, signaling continued upside potential. Key factors supporting the bullish breakout include:
Highest weekly trading volume since early February 2023, indicating strong institutional buying interest.
Relative Strength Index (RSI) above 80, confirming strong momentum but also suggesting overbought conditions, which could lead to short-term pullbacks.
Despite potential near-term profit-taking, the breakout suggests PLTR’s long-term uptrend remains intact.
Bullish Target: Potential Move Toward $240
Using Bars Pattern Analysis, a tool that projects potential future price movements based on past trends, we can estimate how far Palantir’s rally may extend.
By replicating PLTR’s previous rally from February to November 2023, the projected price target sits around $240, which is more than double its recent close at $110.
The projected uptrend suggests momentum could last until November 2024, assuming historical price action repeats.
Key Support Levels for Pullbacks
While the long-term trend remains bullish, short-term retracements are likely. Here are the key levels to watch during potential pullbacks:
$85 Level – Initial support zone. A retracement toward this level could offer a buying opportunity for investors looking to enter on a dip.
$66 Level – A major support level aligned with the rectangle formation’s lower trendline. A test of this level may attract strong buying interest if a deeper correction occurs.
As long as PLTR remains above $85, the bullish trend remains firmly in place.
