Looking at the daily chart of PLTR (Palantir Technologies) with the SPX (S&P 500) plotted in the lower pane for comparison, a few things immediately catch my eye. Just the other day, while the broader market pushed to a fresh swing high, PLTR couldn't muster the strength to follow suit, its price stalled and failed to climb higher. That's a classic bearish divergence, signaling underlying relative weakness even if it's not the most extreme one I've seen.
What really has my full attention now though is the more decisive development. PLTR has broken below its recent uptrend line. That line had been supporting the stock's steady climb for weeks. Once it gives way like this, especially when combined with the relative underperformance against the SPX, the technical picture starts to shift.
The pieces of the puzzle are coming together to form a much more bearish picture. The divergence highlights that momentum is fading relative to the market, and the trendline break confirms sellers are taking control at least in the short term. I expect PLTR to move lower over the coming days potentially testing prior support levels if the overall market weakens or even just consolidates. Of course, nothing in trading is guaranteed, but right now the evidence is stacking up on the downside.
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What really has my full attention now though is the more decisive development. PLTR has broken below its recent uptrend line. That line had been supporting the stock's steady climb for weeks. Once it gives way like this, especially when combined with the relative underperformance against the SPX, the technical picture starts to shift.
The pieces of the puzzle are coming together to form a much more bearish picture. The divergence highlights that momentum is fading relative to the market, and the trendline break confirms sellers are taking control at least in the short term. I expect PLTR to move lower over the coming days potentially testing prior support levels if the overall market weakens or even just consolidates. Of course, nothing in trading is guaranteed, but right now the evidence is stacking up on the downside.
For more analysis and market insights, visit my homepage
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