Fundstrat’s head of technical strategy, Mark Newton, says Palantir’s recent sideways trading is not a sign the rally is over, believing that PLTR is poised for a new leg up.
In a new post on X, Newton pushes back on bearish technical interpretations that frame Palantir’s multi-month pause as flashing a bearish reversal pattern.
Newton says the stock’s lack of progress over the past several months needs to be viewed in the context of improving fundamentals, not weakening momentum.
“PLTR – No, massive sideways consolidations following run-ups are not always head and shoulders patterns, and most times these churns turn out to be the pause that refreshes. The stock has gone nowhere in five months, despite revenues increasing 10% since mid-year.”
But he notes that risk management remains critical, identifying clear downside levels that would change the technical picture if broken.
“As always, keep a close eye on the downside, meaning $166, while $147 would be a crucial area.”
Newton says he broadly agrees with the bullish fundamental backdrop highlighted by other analysts, particularly around Palantir’s exposure to enterprise AI adoption and government defense budgets, though he tempers expectations for near-term upside.
“But I agree with Citi re: accelerating enterprise AI adoption and defense spending, though not sure we see $235 in the 1st half 2026 nor 60-80% revenue growth, but we’ll see.”
From a technical perspective, Newton believes the stock still has room to move higher, but not in a straight line, and not without confirmation from key levels.
“Technically, I suspect we do see a push up above $199, but not inclined to chase. Target might materialize near $215-$220 but it will take a move above $187 to pique interest technically, while under $166 is a warning. Ranges demand risk management.”
While Newton remains bullish on the stock, Big Short investor Michael Burry believes that PLTR is highly overvalued. He placed a bearish bet on the stock, believing that it was worth $30 or less.
At time of publishing, PLTR is valued at $178.96.
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