For only the 9th time in its history, Palantir shares lost more than 10% in one day's trading on Monday.
Palantir shares broke through the psychologically significant $80.00 level to finish trading at $76.38 for the day. The stock has been able to trade in a consolidation pattern between 80 and $90.00 for much of the last two weeks, while the rest of the market has declined.
One reason for the recent relative strength is that many investors continue to step in to buy the recent dip after the stock tumbled from its price above $120.00.
Today's volume was heavier, though not reaching the excessive levels that were seen following the company's better than expected earnings report on February 3rd.
The options market saw increased activity through the March and April puts on Palantir. Options traders were trading the $70.00 strike heavily in both of those expiration cycles. The increase in port option activity suggests that options traders are preparing for the stock to further its decline over the next 20-30 days.
Also notable in the options market is the fact that call options remain heavily traded among investors. This suggests there is increased interest in buying Palantir shares during the most recent decline.
Palantir has been fighting to remain above its 50-day moving average over the last two weeks. That trendline has just shifted into a neutral pattern. A move towards $70 is likely to move the stock’s 50-day trendline into a bearish trend, suggesting lower prices over the next 4-6 weeks.
Despite the recent selling, Palantir remains in a long-term bull market trend.
The stock remains slightly (0.9%) in positive territory for 2025 while the Nasdaq 100 currently reflects losses of 7.35% for the same period.
Outside of Palantir’s round-numbered $70 price holding as support, investors should expect that the stock’s 200-day moving average will be the next technical figure to lend support to Palantir stock. That trendline currently trades at $50, a 60% decline from the stock’s February all-time highs.
From a long-term perspective, Palantir stock maintains a bullish outlook with a price target of $150 suggesting that the stock remains a long-term “buy the dip” candidate.
