Palantir Plunges 7.8% To $119.91 Amid Bearish Technical Breakdown

Palantir (PLTR) concluded its most recent session at $119.91, marking a 7.77% daily decline. This extends a two-day losing streak totaling a 9.96% drop, with heightened volume signaling strong bearish conviction.
Candlestick Theory
The latest daily candle shows a long bearish body closing near the low ($119.91), confirming rejection near the psychological $130 resistance. Prior price action formed a shooting star on 2025-06-03 (high: $135.28, close: $133.17) at the 52-week peak, indicating exhaustion. Key support emerges at the $119–$120 consolidation zone from late May, while resistance solidifies at $132–$135, the recent double-top formation. A decisive break below $119 invalidates the bullish structure.
Moving Average Theory
Critical SMAs exhibit bearish alignment: the 50-day SMA ($118.50) is converging with the 100-day SMA ($116.20) below the declining 200-day SMA ($120.80). Current price trades at the convergence of the 50-day and 200-day averages, reflecting trend ambiguity. However, the imminent 50/100-day death cross suggests waning medium-term momentum, potentially accelerating selling pressure below $118.
MACD & KDJ Indicators
MACD shows bearish momentum expansion, with the histogram deepening below the signal line since early June. Concurrently, KDJ registers an oversold signal (%K: 18, %D: 24, J: 6) after plunging from overbought territory (>80) on June 3. While oversold, both oscillators lack bullish divergence, indicating unresolved downward pressure. The MACD-KDJ confluence suggests further consolidation risk near-term.
Bollinger Bands
Volatility has expanded sharply, with the price piercing the lower Bollinger Band ($126) during the recent selloff. The 20-day band width widened by 40% since late May, confirming elevated volatility. Despite the oversold breach, the absence of a reversal candle or volume confirmation suggests bears retain control. Band contraction would be needed to signal stabilization.
Volume-Price Relationship
Distribution days dominate: the selloff on June 5 occurred on 132.2M shares (31% above 30-day average), validating bearish conviction. Conversely, the May 30 rally (+7.73%) saw even higher volume (185.9M shares), creating a technical "churn" pattern. This volume divergence indicates absorption of demand, weakening structural support at the $119–$122 zone.
Relative Strength Index (RSI)
The 14-day RSI collapsed from overbought (73 on June 3) to oversold (29 currently) in just three sessions. While the sub-30 reading warns of potential relief, the velocity of the decline—without positive divergence—suggests the indicator could remain depressed. Historically, PLTR’s RSI has lingered below 30 during sustained corrections (e.g., January 2025).
Fibonacci Retracement
Applying Fib levels to the swing low ($63.89 on 2024-11-26) and high ($132.85 on 2025-06-05) shows critical thresholds. The 38.2% retracement at $108.50 aligns with the May 6 low ($108.86), establishing it as major support. The current pullback ($132.85 to $119.91) has surpassed the 23.6% level ($125.40), targeting the 38.2% level next. A breach below $108.50 would imply a deeper 50% correction toward $98.
Confluence & Divergence Observations
Confluence supports bearish bias: Volume confirms rejection at $135 resistance, KDJ/MACD momentum is synchronously negative, and the price trades below critical SMAs. However, oversold RSI and Bollinger signal contra-warning signals, suggesting tactical rebounds near $115–$118 may emerge before sustained downside. Notable divergence exists between declining prices and broadening Bollinger Bands, implying volatility may persist.
Conclusion: Palantir faces mounting technical headwinds. The breakdown below $122 invalidates the May uptrend, with risk skewed toward the $108.50 Fib support. While oversold extremes invite near-term bounces, bearish volume/SMA convergences suggest rallies toward $125–$128 should be viewed as exit opportunities until MACD and volume patterns reverse. Monitoring the $119–$120 daily close remains critical for swing direction.