Palantir Stock Slips On Profit-Taking: Is It Time To Buy The Dip?

Palantir Technologies Inc. PLTR is cooling off after a blistering 2024 run. The stock dipped 4.22% on Friday, followed by a 1.8% slide in pre-market trading Monday, as investors cashed in gains amid broader market turmoil.

The question now: Does this pullback present a buying opportunity, or is it the start of a deeper correction?

Tech’s Year-End Stumble

Palantir isn't alone in feeling the heat. The Nasdaq 100 sank 2.2% on Friday, dragged down by megacap names like Tesla Inc TSLA which was down 4.55%, Nvidia Corp NVDA which dipped 2.89% and Microsoft Corp MSFT which was down 2.44%. The broader S&P 500 also retreated, reflecting a tech-heavy sell-off fueled by profit-taking, tax-loss harvesting and year-end portfolio rebalancing.

Read Also: Palantir Was Not Part Of ‘Cool Kids Club,’ Says Dan Ives, As Stock Surges 376%: ‘Group Think’ Mentality Of Institutional Investors Gave Retail The Edge

PLTR Stock's Pullback: Blip Or Bigger Trend?

Despite the recent dip, PLTR stock's technicals remain robust. The stock has soared 376.96% year-to-date, including a 205.56% gain over the past six months. Even with the recent hiccup, PLTR stock is up 19.11% over the past month.

Chart created using Benzinga Pro

From a technical perspective:

• Moving Averages: PLTR stock trades well above its eight-day ($78.52), 20-day ($74.94) and 50-day ($62.38) simple moving averages—clear bullish signals.
• Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) indicator: With an RSI of 60.84 and a bullish MACD of 4.92, PLTR stock is not showing signs of overbought territory just yet.

What's Next For PLTR Stock?

The year-end sell-off feels more like a necessary breather than a red flag for Palantir.

For investors eyeing the long term, the dip might be a gift-wrapped opportunity. With Palantir maintaining strong momentum and bullish technical signals, this pullback could be a chance to get in before the next leg higher. Just keep an eye on macro factors like bond yields and institutional flows — they'll dictate whether ‘buy-the-dip’ thesis holds water.

So, is it time to pounce? For believers in Palantir's story, the answer might just be yes.

Read Next:

• Nvidia Was Blue Chip Star Of 2024, But Trailblazers In the Small Cap Universe Charted Exhilarating Gains — Here Are The Chart Toppers

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