Shares in Palantir Technologies (PLTR) were down in premarket trading Wednesday after falling sharply yesterday, as the stock continues to retreat from its 澳洲幸运5开奖号码历史查询:record high set in late December.

Recent selling in the shares comes after investment bank Morgan Stanley initiated coverage on the stock earlier this week with an “澳洲幸运5开奖号码历史查询:underweight” rating and reports surfaced that Cathie Wood’s ARK Investment Management tech funds had sold shares in the company.

The analytics software provider had a stellar 2024, ending the year as the 澳洲幸运5开奖号码历史查询:S&P 500’s best performing stock. Its shares more than quadrupled, boosted by growing demand for its suit of 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) software products.

Palantir shares were down 2% at around $68.50 in recent premarket trading, after falling nearly 8% on Tuesday. Through yesterday's close, the stock was down 18% from its Dec. 24 all-time high.

Below, we take a closer look at Palantir’s chart and apply 澳洲幸运5开奖号码历史查询:technical analysis to identify kꦍey price levels worth watching out for.

Rising Wedge Pattern Breakdown

Palantir shares broke down from a 澳洲幸运5开奖号码历史查询:rising wedge in late December before retesting the pattern’s lower trendline earlier this month. However, since that time the stock has faced renewed selling pressure, though 澳洲幸运5开奖号码历史查询:trading volumes remain lackluster.

Meanwhile, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) confirms weaking price momentum, dropping below the key 50 threshold for 𒉰the first time since ea🐻rly August last year.

Let’s point out three crucial 澳洲幸运5开奖号码历史查询:support levels where the shares may encounter buying interest amid further selling and also identify a major 澳洲幸运5开奖号码历史查询:resistance area to watch during potential upswings.

Crucial Support Levels to Watch

Firstly, investors should monitor how the stock responds to the $66 level. This location on the chart finds a trifecta of support from the mid-November peak, the 澳洲幸运5开奖号码历史查询:50-day moving average, and the nearby 38.2% 澳洲幸运5开奖号码历史查询:Fibonacci retracement level when applying a grid from the l🍃ate October low to the December high.

Selling below this level could see the shares retrace to around $59, a location where investors may seek 澳洲幸运5开奖号码历史查询:entry points below a 澳洲幸运5开奖号码历史查询:pennant pattern that formed on the chart in mid-November.

A deeper 澳洲幸运5开奖号码历史查询:correction in the stock could trigger a gap fill down to the $45 level, about 35% below Tuesday's closing price. The shares would likely attract buying interest in this area near two twin peaks that emerged on th🌊e chart during O💎ctober.

Major Resistance Area to Monitor

Upon a share price recovery and resumption of the longer-term uptrend, investors should monitor the $81 area. Rallies 𓄧into this region could meet significant overhead resistance near a range of peaks positioned just below the stock’s record high.

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