Palantir Technologies (PLTR) shares tumbled Thursday after plunging 10% yesterday following a report the Trump administration has directed the Pentagon to make sizable cuts to the U.S. defense budget.

Such a move by the Defense Department could negatively affect military contractors such as Palantir, which derived more than 40% of its fourth-quarter revenue from the U.S. government and recently 澳洲幸运5官方开奖结果体彩网:extended a contract with the U.S. Army.

Despite the two-day selloff, Palantir shares still trade nearly 40% higher since the start of the year and have soared 350% over the past twelve months. Investor sentiment in recent months has been boosted, in part, by expectations that the company’s AI-powered analytics software could assist the Trump Administration’s effor🐼ts to improve government efficiency.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Palantir’s chart and identi🍒fy crucial price levels that investors may be monitoring.

Technicals Signal Momentum Shift

Palantir shares have continued to trend higher throughout most of February after staging an earnings-driven 澳洲幸运5官方开奖结果体彩网:breakaway gap above an 澳洲幸运5官方开奖结果体彩网:ascending triangle earlier this month.

However, momentum appeared to shift in Wednesday’s trading session after the stock rallied to a new 澳洲幸运5官方开奖结果体彩网:all-time high before reversing course and closing below the prior day’s low, forming a 澳洲幸运5官方开奖结果体彩网:bearish engulfing pattern in the process.

Moreover, as the price made a higher high yesterday, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a relatively shallower peak to create a bearish 澳洲幸运5官方开奖结果体彩网:divergence, a technical signal🍒 that points to weakening buying activity.

Let’s identify three crucial price levels where the shares could encounter support and also apply the bars pattern tool to project a potential upside target ღif the stock resumes its longer-term uptrend.

Crucial Support Levels to Monitor

Palantir shares shed 5.2% on Thursday to close at $106, after falling as low as 💧$95.♉80 during the session.

Continued selling could see the shares test the 澳洲幸运5官方开奖结果体彩网:psychological $100 level. This area on the chart would also likely provide support near the breakaway gap day’s ꧋session low.

The bulls' failure to defend this area could see the shares fall to around $85. Investors may seek 澳洲幸运5官方开奖结果体彩网:entry points in the location near the 澳洲幸运5官方开奖结果体彩网:50-day moving average and the ascending triangle pattern’s top trendline, a region that could flip from prior resista𝔉nce into future support.

A more significant 澳洲幸运5官方开奖结果体彩网:correction in the stock may trigger a drop to the $66 level, an area on the chart where the shares could attract support near a 澳洲幸运5官方开奖结果体彩网:horizontal line that links the mid-November peak with last month’s 澳洲幸运5官方开奖结果体彩网:swing low.

Bars Pattern Upside Target to Watch

To project a target to watch if Palantir shares resume their uptrend, investors can use the bars pattern tool, a technique that analyzes prior trends to predict how ♋a future directional move might look.

For instance, if we take the price bars comprising the stock’s uptrend from early November to late December — a🅠lso following an earnings-driven breakaway gap — and overlay them from our support level at $100, the tool projects a target of arou🎃nd $170.

UPDATE: This article has been updated after initial publication to include information abut Thursday's trading session.

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