Big Short investor Michael Burry believes that Palantir (PLTR) is now headed to double-digit price levels after the stock broke a crucial support level.
In a new post on X, the analyst who nailed the 2008 housing market collapse shares his technical analysis of the price action of PLTR.
According to Burry, Palantir has likely peaked and reversed its multi-year uptrend after moving below $150.
“I am working on something PLTR.”
Looking at Burry’s chart, he seems to suggest that PLTR is now in a downtrend after breaking the neckline of a head-and-shoulders pattern.
The technical analysis pattern indicates that an asset is exhausted, and lower prices are in sight. Burry appears to suggest that the next technical support for PLTR stands at around $90 but the ultimate target or landing area is just above $50.
In Q4 of last year, Burry revealed that he held a $912 million bearish bet on Palantir, representing his belief that AI is in a bubble. At the time, he said Palantir does not make anything and believes that it should be worth $30 or less.
At the time, the stock was trading at around $180. As of Monday’s close, it is valued at $142.91.
But Fundstrat strategist Mark Newton pushed back on concerns that PLTR is trading in a head-and-shoulders pattern. According to the firm’s head of technical strategy, the pattern suggests that PLTR is gearing up for a surge to new highs, rather than hinting at an outright bearish reversal.
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