Investing Alert: Palantir Stocks Set for Bearish Price Correction

Potential Bearish Correction in Palantir's Stocks

Palantir Technologies (NYSE: PLTR) is known for its role in data analytics software. Following impressive Q2 2024 results, the stock had been enjoying bullish momentum, targeting the $40 mark. However, a recent expert analysis suggests that a bearish correction is on the horizon, marking a significant shift in the market outlook.

Current Stock Performance and Price Targets

As of now, PLTR stocks are trading at $31, reflecting a 2% increase in the last 24 hours. Despite a remarkable 86% rally in 2024 caused by advancements in artificial intelligence (AI), experts are forecasting a price drop. Analysts point to a rising channel formed since early May 2023, suggesting that Palantir may soon test the $26 price point.

• Recent bullish trends indicate the end of a bull run.
• Target price for bearish correction set at $26.
• Institutional ownership has surged to approximately 44%, showcasing investor confidence.

Expert Analysis on Stock Trends

The trend analysis shared by TradingShot illustrates that corrections have historically resulted in prices dipping below the 50-day moving average (MA50) and hitting the 100-day moving average (MA100). The stock's behavior aligns with prior patterns, raising concerns over upcoming pullbacks.

1. Higher highs trend line confirms potential bearish reversal.
2. Important buying opportunity might arise if the Relative Strength Index (RSI) falls into the support range between 35.85 and 30.20.

Market Outlook

The increasing institutional ownership of Palantir signals a strong sentiment among professional investors, with a notable 25% hike over the past year. This trend may provide price stability amid fluctuations, presenting a positive note in an otherwise bearish forecast.