Palantir Technologies Inc. (PLTR) Price Forecast: Multi-Timeframe Breakdown Signals Deeper Correction

Multi-Timeframe Breakdown Confirms Bearish Sentiment

Shares of Palantir Technologies Inc. (PLTR) have confirmed bearish sentiment on a drop through support at key levels. Bearish signals have triggered on all timeframes – daily, weekly, and monthly – emphasizing the potential significance of the reversal signals. When multiple timeframes are telling us similar information, it is a sign to listen carefully. Each timeframe shows sellers taking greater control. After that, it depends on how PLTR follows through. Any signal needs additional confirmation to either agree or disagree with previous technical evidence.

Monthly Chart Signals Larger Corrective Phase

A continuation of the bearish correction from the $207.52 peak in November triggered this week on the monthly chart with a drop below last month’s low of $145.15. During November a failure of support at the 10-month moving average occurred for the first time since the average was reclaimed in May 2023. The bearish signal was confirmed by a monthly close below the 10-month average. This is bearish behavior on the larger timeframe that indicates likely lower prices for PLTR before the correction is done. The monthly pattern influences price action on the weekly and daily timeframes, making it important to understand the ramifications. Like rafting, navigation is simpler when moving with the current.

Weekly Trend Shifts as Key Moving Averages Break

PLTR has fallen by more than $77 (or 34%) from its November peak as of today’s low of $135.75. That puts it at a seven-month low. Support at the 50-week average has failed to stop an extension of the decline, after it did so temporarily last week. Note that the 10-week average is starting to confirm bearish momentum as it has begun to fall through the 20-week average. This shows a change in character, from bullish to bearish, since the shorter average has been above the longer since July 2024. However, the break of the 50-week average is a strong enough bearish signal on its own.

Head and Shoulders Breakdown Reinforces Bearish Bias

The decisive drop through the 50-week average this week further validated the breakdown from a bearish head and shoulders topping formation last week. A breakdown from the pattern confirmed with last week’s close below the neckline. It is interesting to note that the neckline matches the 38.2% Fibonacci retracement level.

Fibonacci Levels Define Downside Targets and Risk Zones

Current lows are testing a 50% retracement level at $136.82 but PLTR looks like it may be on its way to the 61.8% Fibonacci zone at $120.13. That level is confirmed by a prior trend high at $125.41. A measured move derived from the head and shoulders pattern points to $100.16 as a potential downside target.