Palentir stock  (PLTR) shares continued to face intense selling pressure, with Wednesday marking the sixth consecutive session of declines. This downturn was amplified by fresh skepticism from a notable short seller, raising concerns about the company’s elevated valuation. The stock, which had recently soared to record highs, has now entered a correction phase, triggering bearish technical signals and increasing investor caution.

On Wednesday, Palantir dropped another 1%, closing around $156—a steep 16% fall from its record close just a week prior. In intraday trading, the stock plunged to as low as $142, marking a near-24% retracement from recent highs. 

This sharp correction came after Andrew Left of Citron Research, a well-known short seller, stated that palentir’s valuation had become “detached from fundamentals.” He went so far as to claim that the stock should be valued closer to $40, a stark contrast to its current trading levels. 

While Wall Street analysts continue to praise Palantir for its exceptional revenue growth and demand for its AI-driven data analytics platform, many believe these bullish factors are now fully priced in.

Nonetheless, palentir Stocks have surged more than 200 percent year-to-date, so the recent decline amounted to a pullback towering over 50 percent. The tides, however, seem to have changed, especially on the technical side. One red flag is the Relative Strength Index (RSI) that recently went in the red zone into bearish territory. 

The above-mentioned development indicates that the selling pressure has increased and there are chances of further declines. Worsening the situation, Tuesday’s decline was made on the heaviest day of trading since late June, which suggests that institutions may thus be trimming their position sizes.

As the equity continues to slide downwards, it is imperative that other traders and shareholders be keen on key points of resistance and support. The existence of these zones may decide the direction of stock after it and whether it will stabilize and bounce back or plunge further.

The most important support area is located at about 148. This region fits into a minor peak built late in June and a parallel trading range observed in the second half of July. This zone may serve as an attraction point to dip buyers who may wish to get value on a previously crowded zone. It also happens to be close to a measured downside objective based on a past retracement pattern to the 50-day moving average, which similarly followed a series of losses.

Should palentir stock close below $148, the next significant support lies around $125. This level is marked by the February peak and repeated trading activity between May and June, making it a psychologically and technically important region. Buyers may emerge here, especially those who missed the earlier rallies and are waiting for a deeper entry point.

If the broader market sentiment remains weak or company-specific concerns persist, the next major downside level to watch is $98. This support coincides with the March countertrend high and aligns with the mid-April retest of the 50-day moving average. A drop to this area would represent a more extended correction, potentially resetting the stock’s technical base.

Conversely, if palentir stock manages to find support and begins to rebound, investors should keep an eye on the $188 area. This overhead resistance sits just below the stock’s all-time high and could serve as a profit-taking zone for traders who bought during the recent dip. Price action approaching this level will likely face selling pressure as short-term gains are locked in.

With palentir stock investors currently facing volatile uncertainty, technical analysis may be the key to navigate the given path. Whereas the underlying business driver may be fine, i.e., the company’s activities involving artificial intelligence and government contracts, the price action over the short term paints a different picture. The stock seems to be experiencing a healthy yet steep correction and the reaction at identified price levels may provide indications on the direction of the trend.

Support Levels to Watch as Selling Persists

Here’s a summarized table of the key price levels to monitor:

$148 – First Line of Defense

The first important support level to watch is around $148. This area aligns with a minor peak formed in late June and a horizontal trading range seen in the latter half of July. This zone could act as a magnet for dip buyers looking for value near a historically congested area. It’s also near a calculated downside target derived from a previous retracement pattern to the 50-day moving average, which similarly followed a multi-day losing streak.

$125 – Critical Psychological Support

Should palentir stock close below $148, the next significant support lies around $125. This level is marked by the February peak and repeated trading activity between May and June, making it a psychologically and technically important region. Buyers may emerge here, especially those who missed the earlier rallies and are waiting for a deeper entry point.

$98 – Deeper Correction Territory

If the broader market sentiment remains weak or company-specific concerns persist, the next major downside level to watch is $98. This support coincides with the March countertrend high and aligns with the mid-April retest of the 50-day moving average. A drop to this area would represent a more extended correction, potentially resetting the stock’s technical base.

$188 Resistance: Can Bulls Push Back?

Conversely, if palentir manages to find support and begins to rebound, investors should keep an eye on the $188 area. This overhead resistance sits just below the stock’s all-time high and could serve as a profit-taking zone for traders who bought during the recent dip. Price action approaching this level will likely face selling pressure as short-term gains are locked in.

As palentir stock continues its pullback from all-time highs, monitoring these levels becomes vital for managing risk and spotting opportunity. Whether the stock bounces from support or breaks lower, these zones will likely play a pivotal role in determining the near-term trajectory of PLTR.

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