Palantir Technologies (PLTR) has shaken up the market after their latest earnings report, which, while meeting expectations, didn't quite impress investors enough. Despite a raised full-year outlook, shares of this analytics software powerhouse slumped sharply in after-hours trading on Monday.

In its latest quarterly report, Palantir posted an impressive first-quarter revenue of $884 million, marking a 39% increase year-over-year and surpassing analyst predictions. Adjusted earnings per share, at 13 cents, were also up from last year’s 8 cents. However, many investors were likely banking on more aggressive growth after the company’s exhilarating performance in previous quarters.

Before the earnings hit, Palantir’s stock had already soared 64% this year and even quintupled in value over the past 12 months! This surge was fueled by widespread optimism surrounding the company’s potential in enterprise AI projects and government modernization initiatives.

However, the reality struck hard post-earnings: shares plummeted over 9%, closing at $112.32.

Potential Price Patterns Ahead!

Investors are now keenly observing Palantir’s stock chart for clues as to where it might head next. After reaching a dizzying high in mid-February, there was a consolidation phase, followed by a breakout last month. The recent highs, however, have struggled against selling pressure, particularly as the Relative Strength Index (RSI) hinted at overbought conditions.

Could we see a double top pattern forming? It certainly looks that way as we analyze critical support levels moving forward.

Crucial Support Levels to Watch