Shares of Palantir Technologies Inc. (NYSE:PLTR) have run into a resistance level. If they can break through this resistance, they could make a rapid and meaningful move higher.
There is resistance around the $21.25 level because it was support in March and April. Many of the investors who bought shares then regretted their decision to buy when the support broke and the stock moved lower.
Many of these disgruntled buyers decide to sell, but they don’t want to take a loss. As a result, they place their sell orders at the same price that they paid to buy them. In this case, it’s $21.25. If there are enough of these sell orders, resistance forms. That’s what happened here.
If Palantir can make it back above this level and hold its gains, it will mean that these sellers are finished. With this large amount of supply taken off of the market, the stage will be set for a large move higher.
See also: How to Buy Palantir Technologies (PLTR) Stock
