PLTR Stock Slides Below 1st Support on 13% Fall, 2nd Support at Play
Palantir Technologies stock dazzled markets last week with record highs but quickly saw gains erased as profit-taking and tech-wide pressure
Quick overview
- Palantir Technologies' stock surged to record highs after securing a $100 million AI contract with The Nuclear Company.
- The stock experienced a sharp reversal, dropping nearly 12% in one day due to profit-taking and market pressure.
- Traders are now focused on key technical support levels, particularly the 50-day Simple Moving Average, which could determine the stock's near-term direction.
- Despite its potential in AI-driven technology, Palantir's volatility highlights the risks associated with momentum-driven stocks.
Palantir Technologies stock dazzled markets last week with record highs but quickly saw gains erased as profit-taking and tech-wide pressure sparked a sharp reversal.
Palantir Rockets on Major AI Contract
Palantir Technologies (NASDAQ: PLTR) started the back half of last week with a spectacular rally, surging to all-time highs after securing a $100 million agreement with The Nuclear Company. The deal centers on developing an advanced AI-driven platform that aims to modernize and accelerate nuclear infrastructure construction, placing Palantir at the cutting edge of AI deployment in critical industries.
PLTR Share Price Chart Daily – Sellers Targeting the 50 SMA
The announcement added credibility to Palantir’s long-term mission—merging defense-grade software with industrial technology and national infrastructure. The market reacted swiftly, with PLTR shares rocketing to $148.22, a new high, as investor sentiment reached a fever pitch on the back of this high-profile win.
Friday’s Reversal: Profit-Taking Hits Hard
However, the mood changed dramatically by Friday’s session. The stock dropped 10%, closing at $130.74, a fall of nearly 12% from Thursday’s peak. This kind of sharp pullback is often associated with heavy profit-taking, particularly after major catalysts and emotional highs.
Despite the long-term promise of the AI project, Palantir’s reputation for volatility once again came to the fore, as retail and institutional traders scrambled to lock in short-term gains. The abrupt turnaround reflected not only the emotional trading that PLTR regularly sees, but also how sensitive high-momentum tech stocks can be after big news events.
Tuesday’s Slide: Support Levels in Focus
The selling pressure continued into Monday, with PLTR dipping further to $128.50 and breaking below its 20-day Simple Moving Average (SMA)—a key technical indicator of short-term trend strength.
Sellers are now testing the 50-day SMA, which sits near current levels and has historically offered support during pullbacks. If this level fails to hold, the correction could deepen toward lower technical zones.
For now, traders are urged to watch closely—a failure to hold the 50-day SMA may invalidate the recent breakout move. Investors looking to enter should be cautious and wait for signs of stabilization.
Conclusion: Palantir’s meteoric rise on the back of a major AI deal with The Nuclear Company showcased its potential in national-scale technology deployments. But the swift reversal that followed reminds traders of the risks associated with momentum-driven names. With key technical levels now under pressure, PLTR remains a battleground stock—rich in long-term promise, but not without near-term pitfalls.
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