Palantir (PLTR)
On the weekly timeframe, Palantir Technologies (PLTR) has completed its initial yellow wave (1) advance, marking the end of a full impulsive sequence within its broader green cycle. This development suggests that the stock has finalized its first major bullish phase at the highest degree of the current cycle, paving the way for a corrective retracement — identified as yellow wave (2).
For this corrective phase, we have established a Fibonacci retracement zone extending from the 50% level at $98.05down to the 78.6% level at $45.27. This range represents the ideal area for Palantir to retrace and consolidate the gains achieved during its initial impulsive advance.
From a long-term structural perspective, this upcoming correction is viewed as a natural and necessary phase within the broader bullish cycle. Once yellow wave (2) completes, we expect the stock to regain strong upward momentum from within the Fibonacci support region, setting the stage for the next major advance, into yellow wave (3). Historically, this wave tends to be the most dynamic and powerful leg of the Elliott Wave cycle, often characterized by steep rallies and accelerating investor participation.
In the near term, however, Palantir is entering a corrective environment, shown on the daily chart of Palantir. This lower timeframe allows for more precise validation points to confirm the unfolding of yellow wave (2) and to monitor key support levels throughout the correction.
Our daily chart provides the necessary validation points to confirm that Palantir has indeed entered its corrective yellow wave (2) phase. A decisive break below the key support levels at $169.15 and $142.43 — both highlighted in red — would strongly reinforce this corrective scenario and align price action with our projected Fibonacci retracement zone.
Trading Plan:
Our current primary expectation is clearly bearish in the short to medium term, reflecting the unfolding correction within yellow wave (2). While further downside pressure is anticipated, this phase is viewed as a structural reset rather than a trend reversal.
The Fibonacci retracement zone between $98.05 and $45.27 marks a critical accumulation area — a potential long-term inflection point and, in our view, a rare buying opportunity. Once this corrective sequence reaches completion, Palantir is expected to establish a significant cyclical low, paving the way for the next major impulsive advance into yellow wave (3).
In essence, short-term caution remains warranted, but the broader Elliott Wave structure continues to signal a powerful bullish continuation pattern once this correction runs its course.
We will update you as soon as there are structural validations or changes!
