Palantir Jumps 10% In Two Sessions After 7.7% Plunge

Palantir (PLTR) advanced 3.40% in the most recent session, extending gains to a second consecutive day and resulting in a two-day increase of 10.13%. This follows a volatile session on June 5th, where the stock plunged 7.77% amid heavy trading volume of 132 million shares before rebounding strongly. Below is a technical assessment of PLTR’s price behavior over the past year, synthesized from key technical frameworks.
Candlestick Theory
The recent price action reveals noteworthy candlestick patterns. The June 5th session formed a long bearish candle (high: $132.85, low: $118.93), indicating intense selling pressure. This was immediately followed by a bullish engulfing pattern over the next two sessions (June 6th–9th), where the rebound candles fully consumed the prior day’s body, signaling strong buying interest. Resistance is established at $135.28 (June 3rd high), while support lies at $118.93 (June 5th low), aligning with the psychological $120 level tested multiple times in late May. A decisive close above $135.28 would invalidate this resistance.
Moving Average Theory
PLTR’s moving averages reflect a bullish intermediate trend but potential long-term consolidation. The 50-day MA currently slopes upward near $125, supporting the price action since mid-May. The 100-day MA at $115 and 200-day MA at $95 both trend neutrally, with no significant crossovers occurring recently. Price trading above all three MAs suggests bullish near-term momentum, though the flat 200-day MA indicates unresolved long-term directionality. The absence of a golden/death cross (50 vs. 200-day) reduces conviction in a major trend shift.
MACD & KDJ Indicators
The MACD histogram turned positive on June 6th, confirming bullish momentum as the signal line crossed above the MACD line. This aligns with KDJ readings: the %K (85) and %D (82) lines are in overbought territory following their crossover on June 6th. While both indicators support the rebound, the KDJ’s overbought condition suggests near-term exhaustion risk. A divergence would emerge if price advances further without corresponding strength in MACD histogram bars.
Bollinger Bands
Volatility expanded sharply during the June 5th sell-off, with price breaching the lower band. The subsequent rebound has pushed PLTR back above the 20-day midpoint band ($128), signaling neutral volatility. The bands remain moderately wide (upper band: $137, lower: $119), reflecting persistent but non-extreme volatility. A sustained move above $130 would position the stock for a potential test of the upper band, while a contraction in band width may precede a directional breakout.
Volume-Price Relationship
Volume trends validate recent price movements. The June 5th sell-off occurred on the highest volume in 30 days (132M shares), confirming bearish momentum. However, the rebound on June 6th–9th saw declining volume (87M → 74M shares), raising questions about sustainability. Notably, the May 30th rally to $131.78 coincided with 186M shares (highest volume in 3 months), establishing high-volume support near $123. For the rally to extend, volume must expand on upward sessions.
Relative Strength Index (RSI)
The 14-day RSI currently reads 68, approaching overbought territory (>70) but not yet signaling exhaustion. This aligns with the KDJ’s overbought condition but carries less immediacy due to its slower calculation. The RSI rebounded sharply from near-oversold levels (34 on June 5th) to its current state, reflecting accelerating momentum. While a break above 70 may suggest near-term pullback risk, RSI divergence would only materialize if new price highs lack RSI confirmation.
Fibonacci Retracement
Applying Fibonacci to the recent swing high ($135.28 on June 3rd) and swing low ($118.93 on June 5th), key retracement levels emerge. PLTR closed at $132.06, surpassing the 78.6% retracement level ($131.78), indicating strong recovery momentum. The 61.8% ($129.03) and 50% ($127.10) levels now act as support. Confluence exists between the 78.6% retracement and horizontal resistance at $132.23 (June 9th high), making a close above $132.50 critical for bullish continuation.
Confluence and Divergence
A notable confluence exists around $131–$132, where the 78.6% Fibonacci level, May 30th high ($131.94), and June 9th high ($132.23) converge. A decisive break above this zone would signal strength. However, bearish divergence appears in volume during the recovery (declining volume on up days). This contrasts with bullish alignment in MACD, KDJ, and Fibonacci retracement levels. Should PLTR consolidate above $130 with improving volume, upward momentum may extend toward $135.28. Conversely, failure below $129.03 (61.8% Fib) may trigger profit-taking toward $125 support. Overall, technicals lean bullish short-term but warrant caution due to volume and overbought oscillators.