Palantir (PLTR) Slides After Breakdown, Lower Targets in Focus

It wasn’t too long ago that the stock of Palantir Technologies, Inc. (PLTR) was a market leader, and investor demand was strong. But following the trend high of $207.52 in early November, PLTR formed a bearish head and shoulders top, which triggered to the downside on January 30. That high represented a 3,405% gain for the stock over 35 months, measured from the start of the long-term bull trend at $5.92 – the January 2023 low. The bearish reversal led to a decline to $126.23, where support was found, aligning with a prior resistance zone from the February 2025 trend high that has now turned into support.

This marked the first leg lower following the breakdown from a key price level that triggered the bearish reversal signal. Subsequently, the first pullback after the breakdown produced a counter-trend rally that tested prior support as resistance near the neckline of the head and shoulders pattern and the 200-day moving average. A high for this rebound was reached at $162.40 on Tuesday before sellers regained control. This advance confirmed that the prior dynamic support of the 200-day moving average had shifted into resistance, reinforcing the developing bearish structure. Additionally, the declining 100-day moving average has now converged with the 200-day average, identifying a similar price zone, and this convergence further strengthens the resistance area and signals increasing bearish momentum.

Once the first pullback successfully tests prior support as resistance, the bear trend is typically positioned to continue. There has only been one leg down following the head and shoulders breakdown, and a second leg down would be expected at a minimum. That second leg appears to have begun this week, following a bearish reversal below $148.06, which had served as support for a tight three-week consolidation range. This breakdown established a lower swing high at $162.40, marking the C point of a falling ABCD pattern. The ABCD pattern tracks the relationship between two consecutive price swings in the same direction to identify potential pivot levels once symmetry is achieved.

The head and shoulders top formation and ABCD pattern together provide multiple downside targets for PLTR. The measured move objective for the topping pattern points to an eventual target near $91.90. This level aligns closely with the 61.8% Fibonacci retracement of the prior upswing that began from the April 2025 higher swing low at $92.66, creating a confluence zone. Slightly below is the initial 100% projected target for the ABCD pattern at $89.75, further reinforcing this support area.