Palantir Shares Drop 1.13% to $168.33 Amid Bearish Technical Signals

Palantir Technical Analysis
Palantir shares declined 1.13% to $168.33 in the most recent session, extending losses to three consecutive days with a cumulative 1.81% decline. This pullback occurs near recent resistance around $171.50, a level tested multiple times in September 2025 without decisive breakout.
Candlestick Theory
Recent candlesticks reveal a potential bearish reversal pattern. The September 12th hammer candle ($164.01 low to $171.53 close) signaled temporary buying pressure, but was followed by three consecutive bearish candles with lower highs. Notably, the September 17th session printed a long lower wick (low: $161.27), indicating buying interest near $161 support. Critical resistance remains at $171.50-$172.00, while support converges at $161.00-$161.30 and $155.00.
Moving Average Theory
The 50-day moving average (near $155) maintains upward slope beneath current prices, confirming intermediate bullish bias. A bullish golden cross occurred in May 2025 when the 50-day crossed above the 200-day, establishing a long-term uptrend. The current price trades above all key MAs (50/100/200-day), but the 8% premium above the 50-day MA suggests potential near-term consolidation. The 200-day MA near $125 provides primary structural support.
MACD & KDJ Indicators
MACD histogram shows diminishing bullish momentum, with the MACD line threatening to cross below its signal line—a potential bearish signal. KDJ’s %K (65) and %D (70) are retreating from overbought territory but remain above 50, indicating residual upward momentum. Neither oscillator currently signals extreme conditions, though negative MACD divergence versus price action in early September warrants caution.
Bollinger Bands
Bands expanded sharply during the September 5th–12th rally (148–172 range), reflecting high volatility. The subsequent consolidation has narrowed bands, suggesting declining volatility. Recent price action tested the lower band ($161.27), finding support. A sustained break below $160 would likely trigger volatility expansion downward. Upper band resistance stands near $174.
Volume-Price Relationship
The September upswing (Sept 5–12) featured above-average volume (62–91M shares), validating bullish momentum. However, the recent three-day pullback occurred on declining volume (54M→35M shares), suggesting limited conviction among sellers. Volume divergence during the September 15th near-breakout attempt ($171.80 high on 45M shares, below prior rallies) signaled insufficient buying pressure for resistance breach.
Relative Strength Index (RSI)
The 14-day RSI (55) retreated from overbought territory after peaking near 72 in early September but remains above neutral. Current readings imply moderating bullish momentum without oversold conditions. Notably, bearish RSI divergence emerged as prices tested the $172 resistance in September while RSI peaked lower than its August high—a warning sign for trend exhaustion.
Fibonacci Retracement
Applying Fibonacci to the August–September swing low ($148.04) and high ($171.80) yields critical levels: 23.6% ($167.10), 38.2% ($164.50), and 50% ($162.30). Price found initial support at the 23.6% level during the recent pullback. A breach below $162.30 would open the door to a deeper correction toward the 61.8% retracement at $160.00. This zone aligns with the September 17th intraday low, creating a technical confluence.
Confluence and Divergence Observations
Significant confluence exists around $160–$162, combining the Fibonacci 61.8% retracement, September 17th low, and Bollinger Lower Band—a robust support cluster. Bearish divergences appeared in September: RSI and volume failed to confirm price highs near $172, while MACD momentum waned. These divergences preceded the current pullback, though the overall uptrend remains intact above key moving averages. A decisive close below $160 would negate the near-term bullish structure, while reclaiming $172 resistance would signal breakout continuation.