See these Palantir price levels following the stock’s Nasdaq 100 admission

On By Littum

Source: TradingView.com
Source: TradingView.com

  • Palantir shares are likely to be in the spotlight Monday after Nasdaq announced late Friday that the analytics software provider had been added to the Nasdaq 100 index.

  • The stock has continued to trend sharply higher after breaking out of a cup and handle pattern, although the relative strength index warns of overbought conditions that could lead to near-term price volatility.

  • The gauge, which calculates the percentage change of the cup and handle “cup” and adds it to the upper trendline value of the pattern, projects a bullish price target of $140.07.

  • Investors should see key lower levels on Palantir’s chart at $45 and a support zone between $33 and $29.

Palantir Technologies (PLTR) shares are likely to be in the spotlight on Monday after Nasdaq announced late Friday that the analytics software provider along with MicroStrategy (MSTR), and Axon Enterprise (AXON), had been added to the Nasdaq 100 index.

The share’s admission in tech-heavy benchmark comes after it more than quadrupled from the start of the year at Friday’s close, boosted by rising demand for the software maker’s custom artificial intelligence (AI) offer. The company’s shares became eligible to participate in the index following a strategic move to Nasdaq from New York Stock Exchange (NYSE) last month.

Below we break down technical at Palantir’s weekly chart and identify key price levels that investors may be watching.

The site breaks out from a multi-year cup and handle pattern in August, Palantir stock has continued to trend significantly higher. Trade volumes has supported the move higher, indicating buying participation from major market participants.

The relative strength index (RSI) confirming bullish momentum, although the indicator’s elevated reading above 80 warns overbought conditions which may lead to price fluctuations in the short term.

Let’s apply technical analysis to project a long-term bullish price targetwhile also pointing at the key support levels that can attract buying interest during retracements.

To predict a potential bullish price target, investors can use measurement principlea chart-based technique that analyzes the cup and handle pattern to project a future move.

When we apply the method to Palantir’s chart, we calculate the percentage change of the cup and handle “cup” and add it to the top of the pattern trend line value. For example, we add a 383% upside to $29, projecting a target of $140.07, about 85% above Palantir’s Friday close.