Palantir Stock Tests Key $145 Resistance Amid Mixed Technical Signals

Candlestick Theory
Palantir's recent trading reveals notable candlestick patterns, with the July 9 bullish engulfing candle (open $137.39, close $143.13) signaling strong upward momentum after a consolidation phase. However, the subsequent two bearish candles (July 10-11) formed indecisive spinning tops near the $145 resistance level, indicating hesitation as the stock retreated to $142.10. Key support now rests at $137.39 (July 9 low), while resistance is evident between $144.58-$145.16, a zone tested three times in July without decisive breakout. The $130 psychological level remains critical long-term support, tested successfully during June's volatility spike.
Moving Average Theory
The 50-day moving average ($131.40) recently crossed above the 100-day ($123.75) and 200-day ($106.20) MAs in May, confirming a major bullish trend reversal. Current price action maintains position above all three key MAs, though the recent pullback brings the $138.60 20-day EMA into focus as immediate dynamic support. Significantly, the 50-day MA has provided consistent support during June-July retracements, with the ascending slope of all three MAs reinforcing the structural uptrend. A sustained break below $138.60 may signal near-term consolidation.
MACD & KDJ Indicators
The MACD histogram (12-26-9) has shifted negative after a bearish crossover on July 10, with the signal line crossing above the MACD line as momentum weakens. This aligns with KDJ readings (K=42, D=58, J=27) where the K-line crossed below D-line in overbought territory (>80) on July 9, suggesting waning bullish pressure. However, neither oscillator yet signals extreme conditions; rather, their synchronization implies potential short-term consolidation without imminent reversal. Historical divergence occurred in late June when prices made higher highs while MACD formed lower highs, forewarning the subsequent 9% correction.
Bollinger Bands
Bollinger Bands (20-day, 2σ) expanded sharply during June's $119-$145 volatility surge, but have since contracted by 18%, indicating reduced volatility and potential energy accumulation. Price currently hovers near the middle band ($138.40), retreating from the upper band ($147.20) tagged on July 10. The narrowing band width and rejection at upper limits suggest consolidation is probable before a directional resolution. Critical support exists at the lower band ($129.60), which contained late June's sell-off.
Volume-Price Relationship
Recent volume patterns show divergence: the July 7 breakout rally (+3.54%) occurred on 71.96M shares (20% above average), confirming bullish conviction. Conversely, the July 10-11 declines saw diminishing volume (64.38M and 52.13M respectively), indicating absence of aggressive selling pressure. The June 27 capitulation event (-9.37% on 202.6M shares, highest in dataset) established a capitulation low, while subsequent recovery rallies consistently attracted above-average volume—a constructive sign. Current pullback lacks volume confirmation, suggesting accumulation rather than distribution.
RSI (Relative Strength Index)
The 14-day RSI reading currently stands at 58, moderating from near-overbought conditions (71) on July 10. While neutral at present, this decline coincides with the price pullback, showing no bullish divergence yet. RSI previously signaled oversold (26) during late April's consolidation before the explosive 19% rally on April 9—an early trend-reversal indicator. Current RSI trajectory suggests weakening momentum but remains above the critical 50 level that would indicate bearish shift in sentiment.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from November 2024 low ($65.47) to July 2025 high ($145.16), key retracement levels emerge: 23.6% ($129.06), 38.2% ($118.85), and 61.8% ($94.40). Recent price action honored the 38.2% level ($118.85) as support during May-June pullbacks, with the 23.6% level ($129.06) aligning precisely with the June 27 reversal low. Current price trades above the critical 23.6% support. A breach below $129 would target the 38.2% level next, though confluence with the 50-day MA at $131.40 adds reinforcement.
Confluence & Divergence Synthesis
Multiple technical perspectives converge at $129-$132 support: the Fibonacci 23.6% retracement ($129.06), 50-day MA ($131.40), and previous swing low ($130.74). The volume-diminished pullback into this zone strengthens its validity as accumulation territory. However, emerging divergence appears between slowing momentum (MACD histogram negative, KDJ bearish cross) and price structure (still above key MAs). This suggests probable near-term consolidation between $137-$145 before directional resolution. The sustained uptrend remains intact below $129, while decisive close above $145 with volume confirmation would open upside toward $160 psychological resistance.