Palantir Plunges 9.35% Extending Five-Day Slide to 15.63% Weekly Loss

Current Market Context
Palantir (PLTR) concluded its most recent session at $157.75, marking a significant 9.35% decline and extending its losing streak to five consecutive days. This downturn represents a 15.63% cumulative loss over the past week, underscoring heightened bearish momentum.
Candlestick Theory
Recent candlestick patterns reveal a pronounced bearish sequence. The current five-day decline manifests as consecutive red (down) candles with expanding bodies and increasing volume, reflecting escalating selling pressure. Key resistance now materializes near $172.30 (recent high wick) and more critically at the $190 psychological barrier rejected sharply on August 12. Immediate support resides at $156.90 (today’s low), with a structural breach opening risks toward the July consolidation base near $147–$150.
Moving Average Theory
The 50-day MA (~$135) has crossed bearishly below the 100-day MA (~$122), confirming a negative near-term trend shift. However, price remains above the 200-day MA (~$95), preserving the longer-term uptrend structure. The widening gap below shorter-term averages highlights immediate bearish dominance. Sustained trading under $170 (confluence of 50/100 DMA breakdown zone) reinforces downside bias.
MACD & KDJ Indicators
MACD exhibits a deepening bearish crossover (signal line divergence accelerating below zero), signaling strengthening downward momentum. KDJ corroborates this, with the K-line (21.8) and D-line (28.5) entrenched in oversold territory. However, the J-line (-16.8) underscores extreme downward exhaustion, suggesting potential for a technical rebound, though not yet indicating reversal confirmation.
Bollinger Bands
Price pierced the lower band ($162) decisively today, coupled with a 20% band expansion—typical characteristics of a volatility breakout favoring continuation downside. The pronounced band width growth signals rising bearish momentum. Price closing below the lower band often precedes short-term mean reversion attempts but requires monitoring for band containment to signal stabilization.
Volume-Price Relationship
Distribution patterns dominate the sell-off: Recent down days (notably August 19 volume: 135.5M shares) consistently exceed volume on prior up days (e.g., August 5: 130.9M shares). This volume asymmetry validates bearish conviction. Absence of climactic selling volume today, despite the large decline, suggests additional supply remains, warranting caution against premature bottom-fishing.
Relative Strength Index (RSI)
Current RSI (28.4) flags deeply oversold conditions, nearing levels last seen during the June 27 sell-off (RSI: 25.7). Historically, readings below 30 have preceded technical rebounds. Nevertheless, in strong downtrends, RSI can remain oversold for extended periods; thus, this signals heightened risk of relief rally rather than confirmed reversal.
Fibonacci Retracement
Analyzing the primary uptrend from the December 2024 low ($65.47) to the August 2025 peak ($190.00), key retracement levels emerge: The 23.6% level ($167.30) was breached decisively today. Next critical support aligns with the 38.2% retracement ($147.80), closely overlapping with the July price base and 200-day MA proximity. A breakdown here could expose the 50% level ($127.70). The breach of 23.6% strengthens bearish control.
Confluence & Divergence
Significant confluence exists around bearish momentum: MACD acceleration, moving average bear cross, and volume-backed breakdowns affirm downside bias. However, oversold divergence appears via RSI/KDJ extremes against price, hinting at potential but unconfirmed exhaustion. The absence of bullish divergences (e.g., rising RSI amid lower prices) tempers reversal expectations. Critical monitoring focuses on $147–$150 support confluence (38.2% Fibonacci, July swing lows) where buyer reaction may dictate near-term trajectory. Probabilistically, bears maintain control below $167; only a recovery above $172 may invalidate immediate downside continuation.