Palantir Technologies (PLTR) Shares Pull Back from Another High

FXOpen

Shares in Palantir Technologies (PLTR), a company specialising in big data analytics software, have seen phenomenal growth in 2024, surging by approximately 340%, making it the top performer in the S&P 500 (US SPX 500 mini on FXOpen). This exceptional performance was driven by booming demand for artificial intelligence (AI) and machine learning technologies, which underpin Palantir’s products. The company has demonstrated steady growth in revenue and profitability, attracting major new clients across both the commercial and government sectors.

In 2025, PLTR remains among the market leaders, with its share price up roughly 60% year-to-date. In mid-May, it hit a fresh record high on the back of a strong fundamental backdrop. That backdrop was bolstered yesterday by news that the Pentagon had increased funding for its Maven Smart System programme — which involves deploying AI on the battlefield — to $1.3 billion through to 2029.

However, this news did not result in a new high. In fact, this week, PLTR stock have underperformed the broader stock market — and this may be explained by technical analysis.

Technical Analysis of the PLTR Chart

The interplay of supply and demand in 2025 has formed a broad ascending channel, characterised by:

→ The price breaking above the upper boundary in February following a strong earnings report, and dipping below the lower boundary in response to Donald Trump’s announcement of new international trade tariffs.

→ In mid-May (as shown by the arrow), the median line acted as support. However, after reaching the upper boundary, bullish momentum faded. As a result, the PLTR price has failed to hold recent highs and has fallen back below $130 — with market participants seemingly viewing the stock as overvalued, evidenced by false breakouts above previous peaks.

Given the above, it is reasonable to assume that PLTR may undergo a deeper pullback — potentially towards the median of the channel or even its lower boundary.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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