Palantir (PLTR) shares will probably stay in focus Monday after having a stable final week. The corporate’s inventory soared to a brand new excessive after investor optimism round its strong 2025 outlook and integration of Grok, the chatbot from Elon Musk’s xAI, into its synthetic intelligence (AI) platform.

For the reason that firm’s upbeat outcomes final Monday, a number of analysts have raised their value targets on the inventory, which has fueled this value rise.

The inventory, which grew to become a part of each the S&P 500 and Nasdaq 100 index in 2024, trades practically 50% increased for the reason that begin of the yr via Friday’s shut and has returned an eye-popping 370% over the previous 12 months amid hovering demand for its AI-powered analytics software program that enables clients to make extra knowledgeable data-driven selections.

Beneath, we take a better take a look at the technicals on Palantir’s weekly chart and establish key value ranges that buyers will probably be watching.

Rectangle Formation Breakout

Palantir shares staged a decisive breakout above a rectangle formation final week, signaling a continuation of the inventory’s longer-term uptrend.

Importantly, the transfer occurred on the very best weekly trading volume since early February final yr, indicating sturdy shopping for conviction by bigger market individuals. Furthermore, the relative strength index (RSI) confirms bullish value momentum with a studying above 80, although the indicator additionally flashes overbought circumstances that raises the potential for near-term revenue taking.

Let’s apply technical analysis to forecasts how a longer-term bullish continuation transfer could play out and likewise level out key support levels price watching throughout potential retracements.

Bars Sample Evaluation

To forecast how a continuation transfer in Palantir shares could look, buyers can use the bars sample software, a way that analyzes prior traits to take a position future directional actions.

When making use of the evaluation, we take the inventory’s trending transfer from February to November final yr and reposition it from final week’s breakout. This forecasts a goal of round $240 and signifies the uptrend might final till November this yr based mostly on value historical past. To place issues in perspective, that is greater than double the $110 degree the inventory closed at on Friday.

We chosen this prior pattern because it adopted a volume-backed earnings-driven breakout from an earlier rectangle formation on Palantir’s chart, doubtlessly offering perception as to how an identical transfer could take form.

Key Assist Ranges to Watch

Throughout pullbacks, buyers ought to initially watch the $85 degree. Traders preferring to not chase breakouts could search for entry points on a retracement to the rectangle formation’s high trendline, which might flip from resistance to help.

Lastly, promoting beneath this degree might see Palantir shares revisit decrease help round $66, a location that will entice shopping for curiosity close to the rectangle’s decrease trendline.

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As of the date this text was written, the writer doesn’t personal any of the above securities.