Why Palantir Stock Looks Like It's Ready To Keep Climbing

Palantir Technologies Inc. PLTR shares were trading lower Monday.

Co-founder Peter Thiel may be forced to withdraw billions from his Roth IRA after House Democrats revealed a tax package that would force distribution of individual retirement accounts, 401 (k) plans and other retirement nest eggs above $10 million.

Thiel is the co-founder of both Palantir and Paypal Holdings Inc. PYPL.

Palantir was down 4.82% at $27.32 midday Monday. 

See Also: Palantir, Paypal Co-Founder Peter Thiel's $5B Retirement Piggy Bank Faces Lawmakers' Hammer

Palantir Daily Chart Analysis

• The stock broke out of the ascending triangle pattern and was able to hold previous resistance as support. The stock is now possibly making a second leg higher.
• The $25 price level was an area where the stock struggled to cross above in the past. Now, as the price is above this area, this stock is looking to hold this level as an area of support.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been climbing throughout the last few weeks and now sits at 62. This shows there have been more buyers moving into the stock in recent weeks.

What’s Next For Palantir?

Bullish traders would like to see the stock continue to push higher in the breakout. Bulls are then looking to see a period where the stock cools off and consolidates sideways. Following a period of consolidation, the stock may see another leg higher.

Bears are looking to see the stock fall back below the $25 level and begin to push lower. Bears are looking for the stock fell below the higher low trendline.