Dear Palantir stock fanboys: Here’s the next key price to watch

Palantir Technologies (NYSE: PLTR) stock price has made a remarkable comeback after a series of major orders and growing global risks. The shares jumped to $18 on Tuesday, the highest level since August 7th. It has risen in the past three straight weeks and by over 200% from the lowest level this year.

Palantir Technologies has done well this year as demand for artificial intelligence solutions rose. The company is widely listed as one of the top AI stocks in the market, thanks to its existing and upcoming suits of products known as AIP.

AIP is a software suit that makes it possible for companies to build products faster, automate projects, and optimize their operations easily. Some analysts believe that the company will be a top winner in the AI industry in the long term. This analyst called it the AI trade of the decade.

Palantir Technologies has also won major contracts this year. It recently won a major contract with the UK government that will see it conduct a major overhaul of the National Health Service (NHS). The deal will be worth over $579 million and will help NHS analyse medical data, identify patterns, and overhaul the entire system.

The other major news was that Palantir Technologies won a $250 million contract by the American army. This deal will help it conduct research and develop services in the AI industry.

Palantir Technologies’ stock price has also risen as the world becomes a more dangerous place. The war in Ukraine has been going on for almost two years and there are risks that the Israel and Hamas fight will take months. This is important because Palantir is part of the so-called military industrial complex.

Analysts have mixed opinions about the Palantir share price. The average target for the shares is $13, implying a 24% downside from the current level. Morgan Stanley downgraded the stock recently while Wedbush, Deutsche Bank, and DA Davidson boosted their target.

The daily chart shows that the PLTR stock price bottomed at the key support at $13.70, where it failed to move below since June 23rd, August 18th, and September 22nd. The stock has moved above the 50-day and 25-day moving averages, which is a bullish sign. 

Most importantly, the stock has risen above the resistance point at $17.18, the highest swing on June 8th. By moving above that level, the shares invalidated the head and shoulders pattern that was forming. Therefore, the outlook for the stock is bullish, with the next key level to watch being the YTD high of $20.22, which is 13% above the current level.

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