Those shopping for a home are becoming less inclined to buy amid record-high prices.

Home prices recently hit record highs, increasing 5.8% since the same time last year. High interest rates have compounded costs and driven home prices up even further by discouraging potential sellers with lower interest rates from listing their homes. This keeps the number of homes for sale historically low and pushes prices up further as buyers compete for the few options on the market.

These factors forced many would-be homebuyers out of the market, and economists have said many are biding their time for lower prices and cheaper borrowing costs. However, there are signs that buyers are fed up with high prices.

Buyers are starting to become less inclined to buy a house amid record-high prices.

Pending home sales recently hit a record low. This metric of the housing market tracks when a buyer and a seller have agreed on a price, and the low number of contracts being signed is a sign that buyers can't keep up with rising prices, some economists said.

"Recent housing data readings suggest that buyers, sellers, and builders are in a holding pattern, waiting for home prices or mortgage rates to give before getting into the market," wrote Realtor.com Senior Economic Research Analyst Hannah Jones.

The reluctance of homebuyers seems to have an effect. Home sellers are taking their unsold houses off the market more than ever. Some sellers compromise on the listing price.

A new survey this week by online real estate company Redfin found that for the first time since the pandemic, the typical home is selling for under the listing price during the spring busy season.

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Palantir Technologies (PLTR) shares are likely to remain in the spotlight after jumping to a record high Tuesday following bullish commentary from Ark Invest, which said that the analytics software provider could have further potential upside from the artificial intelligence (AI) boom.

The technology-focused asset manager’s European managing director Rahul Bhushan told in an interview that data analytics software names such as Palantir sit well positioned to capture AI market share from tech giants as demand grows for customized data and AI services that tailor to clients’ specific needs.

Palantir shares rose 6.6% to $41.45 on Tuesday. The stock has gained 141% since the start of the year as of Tuesday’s close, jumping nearly 37% in the past month alone as it got a boost from its recent inclusion in the S&P 500 index.

Below, we take a closer look at the technicals on Palantir’s chart and point out important price levels that investors may be watching.

Since breaking out above an ascending triangle in early July, Palantir shares have continued to trend higher apart from a brief early August correction, with gains accelerating last month after the software vendor’s entrance into the S&P 500.

Importantly, above-average trading volumes have accompanied the stock’s rally, indicating active buying from market-tracking funds.

However, the shares may see short-term profit-taking, given the relative strength index (RSI) flashes overbought conditions and has formed a bearish divergence with the price.

Let’s take a look at three important support levels on Palantir’s chart and use technical analysis to forecast a potential bullish price target.

During an initial pullback, investors should eye the $32.70 level, a location on the chart just below the rising 50-day moving average where the shares may attract support near the August swing high and the Sept. 9 breakaway gap’s opening price.

Selling below this level may see the shares fall to $29, where the price could encounter buying interest near a trendline joining the July peak and September trough.

A deeper retracement could lead to a retest of the $25.50 region, an area where investors may look for entry points around the ascending triangle’s top trendline, which appears to have flipped from resistance into support.

To forecast a potential bullish price target in the stock, we can use a bars pattern, a subjective chart technique that uses prior price action to predict future moves. 

In this case, we’ll extract Palantir’s trend higher from May to August last year and position that move from the early August selloff low, which forecasts a price target of around $55.

We selected this prior move as it started from the lower trendline of an earlier ascending triangle on the chart, similar to how the stock’s current uptrend began.

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