Shares Trade Sideways After 40% Decline; Technical Support at $85 and Resistance at $100 in Focus
Palantir Technologies (PLTR) shares dipped slightly on Monday, down 0.7% to $85.60, as the stock struggled to gain momentum following a sharp sell-off and modest recovery. Last week, Palantir snapped a three-week losing streak after falling nearly 40% from its all-time high in mid-February, with the decline driven by broader market volatility and investor concerns over reduced Department of Defense spending.
The recent bounce came after Palantir announced six major new clients and a strategic product partnership with Databricks, an Nvidia-backed AI startup. Despite the turbulence, the stock remains up 14% year-to-date and has surged more than fourfold in 2024, fueled by growing demand for its AI-driven data analytics platforms in both public and private sectors.
Technically, the stock found support after filling an early-February breakaway gap, but has since traded sideways—signaling investor indecision. The Relative Strength Index (RSI) remains below the neutral 50 level, though it climbed to a three-week high on Friday, hinting at potential upside momentum.
Traders are closely watching key support around $85, near Palantir’s 50-day moving average. If this level fails to hold, the stock could retreat to $66, a region of previous support from mid-January. On the upside, resistance looms at the psychological $100 mark, where profit-taking may occur. A further rally could target $125, just below last month’s all-time high, where sellers may re-enter.
As Palantir navigates market headwinds and builds its commercial footprint, technical levels will remain critical for investors gauging the stock’s next move.
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