Palantir Technologies (PLTR) shares rebounded on Tuesday, gaining 2.2% to close at $78.05. This comes after a three-week downturn that saw the AI-driven company lose more than a third of its market value. The slump can be attributed to broader tech stock sell-offs and growing recession concerns.
Despite the recent pressure, some analysts remain bullish on Palantir. They argue that its suite of AI-powered analytics software positions it well to benefit from government efficiency initiatives. Investors eyeing Palantir should watch several crucial support levels.
These include $66, which aligns with a mid-January trough, and $44, just below the 50-week moving average. A more significant downturn could bring the $30 level into play, matching last July’s peak.
Palantir’s stock recovery amid volatility
During potential upswings, investors should monitor resistance levels. Shares may face selling pressure around $85, corresponding with last week’s closing price. A recovery above this could push the stock towards $121, where it might face resistance near the high of a previous bullish pattern.
Despite the recent volatility, some market analysts believe Palantir’s long-term prospects remain favorable. The company’s focus on AI and data analytics software continues to attract investor interest. This is particularly from those who see enduring value in its government contracts and potential for growth in the private sector.
Palantir’s stock has retreated 38% from its record high three weeks ago. Yet it remains three times higher than its value from a year ago. As market conditions continue to evolve, these key price levels will be essential for investors looking to navigate the stock’s next moves.
