Saad Ullah
⬤ PLTR is losing steam after a long rally, with shares drifting down toward the $130 level on the weekly chart. Even with the recent pullback, the stock is still trading at around 110x forward earnings—a valuation that's raising eyebrows as momentum fades.
⬤ For most of the year, PLTR climbed steadily higher, staying comfortably above its 30-week moving average. The stock kept making new highs through the rally, but that momentum has now stalled out. Price has retreated back into an old consolidation zone, and the recent drop pushed it below that key moving average—a signal that the technical picture is shifting.
⬤ The chart now shows what traders call Stage Four behavior—basically, the early signs of a downtrend. The move toward $130 marks a breakdown from the support level that held during the rally. Losing that moving average support adds weight to the bearish case.
⬤ With PLTR still priced at 110x forward earnings, how the stock behaves around $130 matters. The combination of stretched valuation and weakening technicals is now driving the short-term outlook for the stock.
Saad Ullah
