Palantir Dips 1.43% To 164.36 As Technicals Signal Near-Term Consolidation Amid Bullish Trend

Palantir (PLTR) closed at $164.36 in its most recent session, declining 1.43% amid volatile price action, setting the stage for the following technical assessment.
Candlestick Theory
Recent sessions reveal a mixed pattern, with a notable bullish engulfing candle on September 9–10 (rising from $156.37 to $169) followed by a bearish close on September 11. Key resistance solidifies at $169 (September 10 high), while immediate support rests at $163.22 (September 11 low). A breach below $162.36 (September 9 close) could trigger further downside. The pullback suggests profit-taking after a sharp rally, testing the resilience of the uptrend.
Moving Average Theory
The 50-day MA (≈$154), 100-day MA (≈$148), and 200-day MA (≈$135) all slope upward, confirming a long-term bullish trend. The current price ($164.36) trades above all three averages, signaling sustained bullish momentum. The 50-day MA has repeatedly acted as dynamic support during August pullbacks. Conclusively, the alignment of shorter averages above longer-term ones reinforces bullish sentiment, though a sustained dip below $162 might challenge the 50-day MA.
MACD & KDJ Indicators
The MACD line remains above its signal line but shows narrowing histogram bars, implying waning bullish momentum. KDJ readings hover near overbought territory (K: 72, D: 68, J: 80), with the J-curve starting to turn downward, suggesting near-term exhaustion. While no bearish crossover is evident, divergence between slowing MACD momentum and elevated KDJ hints at consolidation risks. This confluence aligns with the recent retracement from the $169 peak.
Bollinger Bands
Bollinger Bands contracted sharply in early September before expanding during the rally to $169, reflecting volatility resurgence. Price currently orbits the upper band ($166), indicating elevated bullish energy. However, the retreat to $164.36 tests the midline (20-period MA ≈ $159) as interim support. A failure to hold above this level may trigger a reversion toward the lower band ($152), especially if volatility contracts again.
Volume-Price Relationship
The rally to $169 (September 10) saw volume surge to 62.2M shares—above the 30-day average—validating bullish conviction. Conversely, the September 11 decline occurred on reduced volume (42M shares), suggesting limited selling pressure. Notably, August’s sell-offs (e.g., August 19’s 137M shares) coincided with sharp drops, underscoring volume’s role in confirming reversals. Current volume patterns support a bullish bias, though sustainability requires confirmation via volume expansion on upward moves.
Relative Strength Index (RSI)
The 14-day RSI (≈62) moderates from overbought territory (>70 on September 10) but remains above the neutral 50 threshold, favoring bulls. While not oversold, the retreat from 73 relieves overbought tension. Historically, RSI divergences (e.g., price highs not confirmed by RSI in August) preceded corrections, but no such divergence exists currently. The indicator’s midpoint rebound in September reinforces the broader uptrend.
Fibonacci Retracement
Applying Fibonacci to the July low ($156.01 on August 20) and September peak ($169) yields critical levels: 23.6% ($166.25), 38.2% ($163.90), and 50% ($162.50). The September 11 close ($164.36) sits between the 23.6% and 38.2% retracements. Holding above $163.90 may preserve bullish momentum; a drop below $162.50 risks testing the 61.8% level ($161.10). These levels align with candlestick support at $163.22 and $162.36, creating a high-probability confluence zone.
Confluence and Divergence Synthesis
Notable confluence exists at $162–$164, where Fibonacci, moving averages, and volume-supported demand zones converge. This strengthens the case for near-term support. Divergence between KDJ’s overbought signal and MACD’s slowing momentum suggests short-term consolidation, yet broader alignment—via rising MAs, RSI bullish bias, and volume—upholds the primary uptrend. Should $162 fail, increased volatility toward $158 (50-day MA) is plausible, but the overall structure remains constructive.