Palantir Technologies Inc. Shows Signs of Bullish Momentum

Shares of Palantir Technologies Inc. PLTR are trending upwards on Thursday, potentially indicating that the stock has just broken out of a previous resistance level. This breakthrough suggests that a new upward trend may be forming.

Technical Analysis Highlights

In late March, Palantir faced strong resistance around the $97.75 mark, which led to a subsequent decline in its stock price.

Understanding the Resistance

Investors who contributed to the selling pressure at the resistance level became worried that they might have to sell their shares at a loss. In reaction, they lowered their asking prices, which led to a cascade of selling that drove the stock downwards, creating a new downtrend.

Last week, as the stock approached the $97.75 level again, resistance re-emerged. This outcome was expected due to the phenomenon known as ‘buyer remorse’ from earlier investors. Those who purchased shares around $97.75 began to sell when the stock retraced to this level, hoping to recoup their investments.

Current Market Dynamics

Interestingly, the previous resistance level seems to have been breached now. As the stock is currently trading above the $97.75 mark, it indicates that the sellers who helped create the resistance may have either completed their orders or removed them entirely.

With this significant supply of shares now off the market, buyers may find themselves competing against one another, potentially driving prices higher as they seek to attract sellers back into the market.

This development could pave the way for a new uptrend in Palantir’s stock price, signaling an optimistic outlook for the company’s future performance.

Read Next:

Photo courtesy: slyellow / Shutterstock.com