Palantir stock has declined approximately 38% from recent highs. The stock is currently testing a critical Fibonacci support level at $130.5.
The bearish trend features a breakdown below the 50-week EMA, creating short-term downside pressure. Some indicators show early signs of a potential bullish divergence.
This volatility follows Palantir's fourth quarter report, which featured record revenue and strong guidance for 2026. The strong results initially caused a surge in the stock price.
Gains were erased in subsequent sessions amid a broader tech sector sell-off. This reaction has puzzled analysts.