Watch These Palantir Stock Price Levels as Sell-Off From Last Week's High Accelerates

Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now

Shares Have Plunged 30% After Hitting a Record Closing High a Week Ago

Timothy Smith

Tue, Feb 25, 2025, 12:14 PM 3 min read

Palantir stock fell again Tuesday to extend a swift decline from record highs amid investor concerns that the U.S. government could cut spending on the analytical software company's services.
Technical indicators point to accelerating bearish momentum, with the price threatening to close the early February earnings-driven breakaway gap.
Investors should watch key support levels on Palantir's chart around $85, $66 and $44, while also eyeing important overhead areas near $100 and $125.

Palantir Technologies (PLTR) stock fell again Tuesday to extend a swift decline from record highs amid investor concerns that the U.S. government could cut spending on the analytical software company's services.

The stock has tumbled 30% since setting its record high last Wednesday following a report that Pentagon officials had been ordered to cut the U.S. defense budget by 8% annually for the next five years, a move that could negatively impact a key military contractor like Palantir.

However, some analysts argue the sell-off provides a buy-the-dip opportunity, pointing out the company’s data analytics software stands to benefit from a federal push to improve efficiency across government agencies.

The stock was down about 3% at $88 in recent trading after falling more than 10% on Monday. Despite the recent selling, Palantir shares trade 17% higher since the start of the year and have gained roughly four fold over the past 12 months.

Below, we take a closer look at Palantir’s chart and use technical analysis to point out key price levels worth watching out for.

Accelerating Selling Momentum

Since a bearish engulfing pattern marked the stock’s record high earlier this month, Palantir shares have moved sharply lower, with the price threatening to close the early February earnings-driven breakaway gap.

Increasing trading volume during the recent drop indicates selling conviction, while the relative strength index (RSI) indicator’s sudden drop from overbought levels to below 50 also points to accelerating bearish momentum.

Let’s locate several key support levels where investors may look for buying opportunities if the shares continue to fall and also identify two important overhead areas worth eyeing during potential recovery efforts.

Key Support Levels to Watch

The first support level to watch sits around $85. A gap fill in this area could see investors seek entry points near the popular 50-day moving average and prominent late-December peak

Selling below this level may see the shares revisit the $66 region. This area could attract buying interest around the January trough, which closely aligns with the top of a pennant pattern that formed on the chart in late November.