Palantir (PLTR) looks toppy

Palantir (PLTR) reported earnings earlier this week, but the stock looks toppy on both an absolute price basis and relative to the S&P 500.

Our December 4, 2025, Straight from the Chart post suggested that PLTR's weekly uptrend had bent but did not decisively break with support at rising weekly moving averages (WMA) intact.

However, this changed last week.

Yesterday's post suggested that Broadcom (AVGO) and NVIDIA (NVDA) are at risk to become broken leadership stocks. PLTR shows this risk as well.

PLTR has broken lower from a mid 2025 into early 2026 topping pattern relative to the S&P 500. Continued closes below the 13-, 26-, and 40-WMA vs. the S&P 500 keep this bearish shift intact with the potential for PLTR to embark on a lagging trend vs. the broader U.S. equity market. In our view, this relative breakdown provides a bearish leading indicator for absolute price weakness.

On an absolute price basis, PLTR failed to hold its late October breakout from an August-October bullish cup and handle (11/4, 9/26, and 9/11 Straight from the Chart posts) and is at risk to break down from a mid 2025 into early 2026 head and shoulders (H&S) top. While below the broken 13-, 26-, and 40-WMAs from 161 up to 173, the risk for PLTR is tilted to the downside. A decisive move below the 153 to 142 range (38.2% retracement of the April to November 2025 rally and the November and August lows) would confirm the H&S top and suggest deeper risk to 137-136 (50% retracement) and then toward 125-120 (mid 2025 breakout point and 61.8% retracement). The H&S top counts into the low 90s.

Chart 1: Palantir (PLTR) (top) and relative to the S&P 500 (bottom): Weekly chart

Lower highs on the 14-week RSI for PLTR between the left shoulder and head of the developing H&S top have provided an overhang. Last week's break below bull market support at 50 on weekly RSI is bearish, increasing the risk for a deeper downside for PLTR.

Bottoming line: Until proven otherwise, PLTR tilts negative and is at risk to become a broken leadership stock.

Chart 2: Palantir (PLTR) (top) and 14-week RSI (bottom): Weekly chart