Why Palantir could be headed lower

Palantir (PLTR) had a rough session on Friday, finishing the regular trading day down roughly 3.5%. That weakness has not stopped there. Premarket action shows the stock down more than 2% further, driven by renewed concerns around a potential trade war developing between the United States and Europe. When I see downside continuation like this, especially following a weak close, it immediately tells me that sentiment is fragile and that traders are on edge.

From a technical analysis standpoint, Palantir is currently trading within an upsloping parallel channel on the daily timeframe. While an upsloping channel can look constructive on the surface, this specific structure is a bearish pattern. In my experience, these channels often resolve lower once support gives way, particularly when broader headlines introduce uncertainty and pressure risk assets. If this channel were to break to the downside, it opens the door for a much deeper move than many traders may be prepared for.

Should that breakdown occur, the technicals point to significant downside potential, with Palantir potentially trading all the way down toward the low pivot around $147. This level stands out as an important reference point on the chart, and it is where I would expect price to attempt to stabilize if selling pressure accelerates. Until proven otherwise, that risk remains firmly on the table.

For some added context: Palantir is a publicly traded company whose stock has seen increased attention and volatility as market participants react to both macro headlines and technical positioning. Because of that, PLTR can experience sharp moves when sentiment shifts, making it especially important to stay grounded in the chart and avoid emotional decision-making.

As always, I want to emphasize the importance of proper risk management. Set your levels, respect your invalidation points, and do not assume that a stock “has to” bounce simply because it has already pulled back. The chart will ultimately tell the story, and my job as a trader is to listen to it—not fight it.