PLTR Slips Below 200-Day… Did You Catch That Signal?

 

Above is a 60-minute chart of PLTR, with the SPY shown in the lower pane for comparison. I like using this timeframe because it does a good job of highlighting developing relative strength or weakness without getting lost in the noise of very short-term charts. In this case, the message has been pretty clear.

At point B, the SPY pushed to a new high. PLTR didn’t follow. Instead, it put in a lower high, which immediately caught my attention. That’s a classic sign of relative weakness. When a stock can’t keep pace with the broader market during a rally, it’s often a warning that sellers are quietly gaining control. Sure enough, once minor support was broken, PLTR rolled over and sold off, confirming what the relative action was already suggesting.

Switching over to the daily chart on the right, the bigger picture looks even more concerning. PLTR is now clearly trading below its 200-day moving average, a level that a lot of longer-term participants pay close attention to. When price loses that moving average after an extended run, it often marks a shift in character from bullish to neutral at best, or outright bearish at worst.

This move didn’t come out of nowhere. I’ve been warning about potential weakness in PLTR since December 29th. I’ve marked a grey circle on the chart where I alerted my readers that PLTR had turned bearish. At that time, we saw a failed swing high against the SPX along with a break of the uptrend line. Those are not things I ignore, especially when they happen together. Since that alert, PLTR has put in a pretty clean move to the downside.

Just to be clear, when I say I alerted my readers, there’s no paywall or subscription involved. My blog is completely free. I post these observations in real time, not in hindsight. If you want more detail on the initial breakdown, you can check out the post titled “PLTR Turning Bearish: Failed Swing High vs. SPX and Uptrend Line Broken.”

For now, the burden of proof is on PLTR. Until it can reclaim key levels and start showing relative strength again, I’m treating rallies as suspect and respecting the weakness the charts are clearly showing.