Palantir (PLTR) is one of the key tech stocks to watch next week, as the company is set to report its earnings on Monday after the market closes. In the pre-market session, Palantir shares are trading around $41.84, showing a slight increase of about 1%.

Key Technical Levels and Resistance

Analysing Palantir’s weekly chart, the stock has seen bullish momentum since a breakout in September, pushing up toward a significant resistance level at $44.95. Despite a strong rally, Palantir has struggled to breach this resistance, with potential signs of a red weekly close. This $44.95 resistance level will be a crucial hurdle in the coming weeks, especially with ongoing uncertainties around the U.S. elections, Federal Reserve interest rate decisions, and the impact of Palantir’s earnings results.

Technical Indicators: Overbought Signals

Momentum indicators are signaling possible overbought conditions for Palantir. The MACD (Moving Average Convergence Divergence) is cooling off, and the RSI (Relative Strength Index) has dropped to 70 from a recent high of 79, still indicating an overbought state. Traders may view this as an opportunity to take profits before the earnings announcement, potentially increasing pressure on Palantir’s stock.

Earnings Outlook and Potential Price Movements

The upcoming earnings report will be pivotal for Palantir’s price trajectory. While the stock may see a slight pullback due to current overbought levels, strong earnings could fuel a breakthrough above the $44.95 resistance, potentially triggering a brief rally. However, if Palantir’s earnings disappoint or if guidance is revised downward, the stock could face a more pronounced sell-off due to the already high valuation.

Support and Resistance Levels to Monitor

Should Palantir experience a downside movement, initial support lies around $40.33, followed by a more substantial support level near $36.50, which aligns with a previous resistance trendline. A dip below this level could bring the $29-$30 range into focus, an area that has served as key resistance in the past but should now offer support.

On the upside, a breakthrough above the $44.95 resistance could open the door to the psychological price level of $50, where traders may anticipate some resistance, though no technical barriers are currently present beyond the $44.95 level.

Summary

With Palantir's earnings report just around the corner, traders are closely watching key resistance and support levels, as well as technical indicators signaling possible overbought conditions. A strong earnings report could lead to a breakout, while weaker results may prompt a notable decline, especially given the current market conditions and Palantir’s valuation.