Palantir Shares Dip on Defense Budget Cuts
Palantir Technologies (PLTR) shares declined in premarket trading on Thursday following a 10% plunge on Wednesday due to reports of significant cuts to the U.S. defense budget by the Trump administration.
Bearish Technical Signals
The previous day's price action formed a bearish engulfing pattern, indicating a shift in momentum. Investors should monitor support levels around $100, $85, and $66.
Bullish Projection
Bars pattern analysis projects a potential upside target of around $170 if the stock resumes its uptrend. This is based on an overlay of price bars from a previous uptrend from early November to late December.
Key Takeaway
The sell-off in Palantir shares is likely due to concerns over potential budget cuts to military contractors. However, the stock remains significantly higher year-to-date and over the past 12 months. Investors should monitor technical indicators and support levels to identify potential trading opportunities.