Palantir PLTR Plummets 3.47% as 5-Day 13.57% Drop Highlights Bearish Momentum with Technical Indicators

Palantir (PLTR) has experienced a sharp bearish trend, with a 3.47% decline in the most recent session and a cumulative 13.57% drop over five consecutive days. This sustained downward momentum suggests strong selling pressure and a potential breakdown in key support levels. Candlestick patterns over the past week reveal bearish engulfing formations and long lower shadows, particularly around the $145.139 level (2026-01-30 low), which may act as a critical support zone. Resistance appears clustered near $157.63 (2026-01-29 high), where prior failed attempts to rally could resurface as a psychological ceiling.

Candlestick Theory

The recent price action exhibits classic bearish exhaustion patterns, including a series of lower highs and lower lows, with the most recent session’s close near the session low. Key support levels are likely to form at $145.139, $147.12, and $151.86, corresponding to prior intraday lows. Resistance is concentrated at $157.63 and $165.045, with the latter representing a failed breakout level from January 28. A break below $145.139 could trigger further declines toward $136.3–$132.9 (historical support from June 2025).

Moving Average Theory

Short-term and long-term moving averages (50-day, 100-day, 200-day) are aligned in a bearish bias, with the 50-day MA significantly below the 200-day MA. The 50-day MA currently sits around $165–$170, while the 200-day MA is closer to $175–$180, indicating a strong downtrend. Price is trading well below these averages, reinforcing the bearish thesis. A retest of the 50-day MA could trigger short-term bounces but may fail to reverse the broader trend unless accompanied by a surge in volume and bullish divergence in momentum indicators.

MACD & KDJ Indicators

The MACD histogram has turned negative and is widening, suggesting accelerating bearish momentum. The KDJ indicator shows oversold conditions (K < 30, D < 30), but a bearish crossover between the K and D lines suggests further weakness. Divergences between price and these indicators are minimal, indicating alignment in the bearish narrative. However, the KDJ’s oversold reading may hint at a short-term rebound potential, though this remains speculative without a clear breakout above the 50-day MA.
Bollinger Bands
Volatility has expanded in recent sessions, with price nearing the lower Bollinger Band. The 20-day Bollinger Band width is at its widest in months, signaling heightened uncertainty. A break below the lower band could confirm a continuation of the downtrend, targeting $135–$140. Conversely, a rejection at the lower band may trigger a countertrend rally, though this is contingent on volume and momentum signals.

Volume-Price Relationship

Trading volume has surged during the recent decline, validating the bearish move. For instance, the January 30 session saw a 47.27 million-share volume, the highest in weeks, coinciding with a 3.47% drop. However, volume has not shown a significant contraction, indicating that sellers remain active. A declining volume during pullbacks could signal exhaustion, but current volume levels suggest the downtrend is still driven by conviction.

Relative Strength Index (RSI)

The RSI is in oversold territory (<30), typically signaling potential reversals. However, given the prolonged bearish trend and strong volume, this reading may reflect exhaustion rather than a turning point. A move above 30 without a corresponding price breakout could indicate a false recovery. Divergences between RSI and price are absent, suggesting the RSI’s oversold condition may be a precursor to a rebound or a continuation of the downtrend.
Fibonacci Retracement
Applying Fibonacci levels from the recent high ($194.17, December 2025) to the low ($130.74, June 2025), key retracement levels include 38.2% ($161.6) and 61.8% ($146.2). The current price near $146.59 aligns closely with the 61.8% level, which could act as a temporary support. A break below this level may target the 78.6% retracement at $133.6, while a rebound above 38.2% could test the $161.6 level.

Confluence points among indicators include the alignment of bearish candlesticks, moving averages, and MACD, all reinforcing the downtrend. Divergences are limited, but the RSI’s oversold condition and KDJ’s bearish crossover suggest caution in interpreting short-term bounces as trend reversals. The key risks involve a breakdown below $145.139, which could accelerate the decline toward $130–$135. Traders should monitor volume during pullbacks and watch for a rejection at the 61.8% Fibonacci level to assess the trend’s sustainability.