Shares of Palantir Technologies dropped 1 1/2 percent on Tuesday As investors continue to sell large cap technology stocks.
For the most part Palantir shares have outperformed the market, as the stock remains 10% higher in 2025. In mid-March, shares of Palantir surged higher from $80.00 to almost $100 as investors reacted to the possibility that the company could play a larger role with its government contracts.
This reversed the selling pressure that Palantir saw in February because of news that the Department of Defense and Elon Musk’s DOGE were in the process of looking for budget cuts.
Also in February, the stock dropped from $120.00 to $100 following news that the company’s CEO, Alex Karp, was selling $2 billion worth of Palantir after the stock’s 600%+ in 2024.
Despite all of the headlines, Palantir has turned into a pure technical trade.
Since the beginning of March, shares of Palantir have been consolidating around their fifty-day moving average. That moving average is in a strong bullish trend.
Two weeks ago, Palantir surged above its top Bollinger band, indicating that that stock was set for a volatility surge. All indications were that the stock would target $120 over the next month, but the market’s headwinds have turned too strong.
Today, shares are resting at the $80.00 level, which was support seen in early March. The $80 price also served as resistance in early 2025, suggesting that traders will be more sensitive to any move below that price.
This week’s tariff announcements are not likely to influence Palantir from a revenue perspective as the company does not manufacture products outside of its AI technology. That said, general market fear as the Nasdaq 100 will be a factor in Palantir’s short-term directional move.
With that in mind, Palantir shareholders should maintain a focus on the $80 as a trigger price for the stock to accelerate to lower prices. Palantir’s next support level is 12% lower at the next round number price of $70 followed by more support at $60.
Given that Palantir remains in a long-term bull market trend, these prices represent good “buy the dip” opportunities for investors.
