Palantir Technologies (PLTR) shares jumped in premarket trading Monday after S&P Global announced late Friday that the big data analytics software company will join the benchmark 澳洲幸运5官方开奖结果体彩网:S&P 500 index, with the inclusions taking effect before the market opens on Sept. 23.

The Denver-based company’s stock, which has nearly doubled over the past twelve months through Friday’s close, has been on investors’ radar as a possible contender to gain a coveted inclusion in the 澳洲幸运5官方开奖结果体彩网:blue-chip index this year as its 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) software ♉offerings continue to drive profits. 

To join the S&P 500, a company must have reported a profit in its latest quarter and have cumulative profit over the four most recent quarters, requirements the software maker easily satisfies after reporting a profit in the past seven consecutive quarters, with its latest quarterly profit representing the largest in its twenty-year history.

Palantir shares were up 7.8% at $32.69 about 90 minutes before Monday's opening bell.

Below, we’ll take a closer look at what the 澳洲幸运5官方开奖结果体彩网:technicals𓂃 on Palantir's chart are saying and poi🀅nt out important price levels that investors should to watch out for.

August Bear Trap

Palantir shares broke out from an 澳洲幸运5官方开奖结果体彩网:ascending triangle in💛 early July before temporarily falling below the patten during the early August broad market s♕elloff.

However, the stock promptly reclaimed the triangle’s top trendline, climbing to a new multi-year high in the process. The move formed a 澳洲幸运5官方开奖结果体彩网:bear trap, a chart pattern that lures investors into selling or entering 澳洲幸运5官方开奖结果体彩网:short positions before the market makes a prompt recovery.

Looking ahead,ౠ investors should monitor several key price levels on Palantir’s chart that will likely gain attention.

Key Overhead Price Levels to Watch

The first sits around $32.70, roughly in line with Monday’s projected opening price. This area on the chart could provide 澳洲幸运5官方开奖结果体彩网:resistance near a range of similar tradiꦍng levels positioned around last month’s high.

A close above this level could see the shares make a move up to the $34.75 region. We project this target using the 澳洲幸运5官方开奖结果体彩网:measuring principle technique, which calculates the distance between the ascending triangle’s two trendlines in points and adds that amount to the pattern’s top trendﷺline. ($9.25 + $25.50 = $34.75).

Retracement Levels to Watch

A pullback in the stock would likely encounter initial support near $29, a location on the chart where the price finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from a 澳洲幸运5官方开奖结果体彩网:horizontal line linking a range of consolidation around the July high with the upward sloping 50-day 澳洲幸运5官方开奖结果体彩网:moving average (MA).

Further share price weakness could lead to a retest of the key $25.50 level, where investors would likely seek 澳洲幸运5官方开奖结果体彩网:entry points near the ascendi𒊎ng triangle’s top trendline. Such a move would r💜epresent a 16% decline from Friday’s closing price.

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As of the date this article was written, the author does not own any of the above securities.