Today’s stock of the day is Palantir Technologies. The technical picture here is clearly negative and already confirmed.
On the daily chart, we can identify a head and shoulders formation marked in orange. The red neckline of this pattern was broken at the beginning of February, which activated the formation and generated a proper sell signal. Since that breakdown, price has been trending lower in a structured manner, confirming that sellers are in control.
The neckline now acts as resistance. As long as Palantir remains below the red neckline, the sentiment stays negative and the path of least resistance points lower. The breakdown is valid, and there are no signs of structural recovery at this stage.
A move back above the neckline would invalidate the pattern and generate a buy signal. However, given the current momentum and market structure, the probability of such a reversal is limited for now.
From a technical standpoint, this is a confirmed bearish setup, and unless the neckline is reclaimed decisively, Palantir remains under selling pressure.