PLTR recently partnered with Microsoft to sell AI to US defence and intel agencies

Taking a look at Palantir’s stock as yesterday it teamed up with Microsoft in an attempt to sell AI to US defence and intel agencies. Looking at the weekly chart, we can see the stock has now approached a tough resistance point of $29.28. A price level not seen since September of 2021, hence, investors will be closely watching the price action here as a rejection may lead to a bigger-than-usual sell-off due to the current market sentiment. PLTR’s shares are floating at around $29.21 a share in the pre-market, with the open only 20 minutes away. With it being Friday, today’s close could set the tone for the next week. In the short term, a break above this resistance would certainly invite buyers to the market for a push towards the highs of 2021 ($40 a share). However, whether this break holds or fades is the real question that is yet to be answered. As the current market bias is in favour of the bears, the risk to reward is higher right now. A more favourable entry point for the bulls would be if a pullback to the supportive trendline occurred, around $23-$24. We can see the technical indicators are swaying towards bullish but that is primarily due to the recent momentum, it is important to note that technical indicators are lagging indicators and do not guarantee future price movements. Though can be used as a guide for entry points when investing/trading.