Palantir Jumps 4.14% to $160.66 as Bullish Reversal Pattern Emerges Near Key Support

Palantir (PLTR) closed at $160.66 on August 4, 2025, gaining 4.14% with notable volume of 77.4 million shares. This bullish session recovered losses from the prior two trading days.
Candlestick Theory
The recent price action forms a bullish reversal pattern near the $150 psychological support level. The August 4 candle engulfed the preceding down candle's range, suggesting buyer conviction after testing the $157.93 support zone. Resistance is evident near the $161.40 recent high, while substantial support exists at the $150–$152 consolidation area from late July, reinforced by the June swing low at $130.74.
Moving Average Theory
The 50-day SMA (approximately $145) maintains an upward slope above the ascending 100-day ($135) and 200-day SMA ($115). Current price trading above all three key moving averages confirms the primary uptrend. The 50-day SMA has repeatedly acted as dynamic support during pullbacks in June and July, validating its significance as a bull market indicator.
MACD & KDJ Indicators
The MACD histogram shows improving momentum after a bearish crossover in late July, though it remains below its signal line. Simultaneously, the KDJ's %K (86) and %D (79) indicate overbought territory following the recent surge. This divergence between MACD's cautious signal and KDJ's overbought reading may foreshadow near-term consolidation despite the bullish price action.
Bollinger Bands
Volatility contraction occurred in late July as bands narrowed near $155, preceding the current expansion phase. Price now tests the upper band near $161.40, historically triggering minor pullbacks. Band width remains elevated compared to June levels, sustaining an environment conducive to directional moves.
Volume-Price Relationship
Recent advances (August 4 and July 14) occurred on above-average volume, confirming buyer participation. Conversely, the late-June sell-off saw exceptionally high volume (202 million shares), establishing $130 as a high-conviction support zone. Current volume patterns support the uptrend's integrity, though diminishing volume during August pullbacks suggests limited seller enthusiasm.
Relative Strength Index
The 14-day RSI (70) approaches overbought territory after rebounding from neutral levels. While this aligns with near-term overextension risk, it's noteworthy that during May’s rally, Palantir sustained RSI readings above 70 for multiple weeks. Traders should monitor whether current levels prompt profit-taking, though the primary trend remains intact.
Fibonacci Retracement
Applying Fibonacci to the June low ($130.74) and August high ($161.40) reveals key levels: 23.6% retracement at $152.50 aligns with July's consolidation range, while the 38.2% level ($149.38) overlaps with the 50-day SMA. These confluent zones strengthen support significance. A sustained break above $161.40 could signal continuation toward the 127.2% extension near $170.
Confluence and Divergence
Confluence exists around the $150–$152 support zone, reinforced by the 23.6% Fibonacci level, 50-day SMA, and prior price consolidation. Significant divergence appears between KDJ's overbought signal and MACD's lagging momentum, suggesting potential near-term consolidation despite the overall bullish structure. Volume patterns and moving averages continue to validate the primary uptrend.