Palantir (PLTR) continues to attract investor attention as its stock trades near key technical levels. Recently, the company benefited from strong demand for artificial intelligence platforms and government contracts. As a result, analysts expect solid revenue momentum into the second quarter. However, expectations remain mixed because the stock already reflects significant optimism after its strong rally.
Meanwhile, geopolitical tensions in the Middle East are shaping the broader market environment. In particular, defense spending and intelligence demand often rise during periods of instability. Therefore, analysts see potential upside for companies like Palantir that provide data analytics to governments and defense agencies. Still, investors remain cautious as volatility in global markets could influence short-term price action.
Elliott Wave Outlook: PLTR Daily Chart Analysis October 26, 2025
Months ago, PLTR extended in wave (V), showing continued bullish momentum. Wave III pushed up to $190.00 before sharply pulling back to $142.34, marking wave IV. Although the price rallied from that low, it did not break above the wave III high. Therefore, we expected more upside to complete wave V of (V). This structure suggested that wave V was likely to extend, and we looked for the price to move higher as the impulse unfolded.
The market targeted the $201.49–$219.79 zone, where a bearish reaction could signal the completion of wave V. If no reaction occurred, prices could continue climbing to even higher levels. We thought the reaction would likely revisit the $142.34 level at minimum, with a possible retracement toward $100 per share.
Elliott Wave Principle Behind the Market Structure
Impulse
An impulse is a clean 5‑wave pattern that drives the trend forward.
- Waves 1‑3‑5 are strong and directional.
- No overlap between waves 1 and 4.
- Wave 3 is usually the strongest.
- Structure is clear, with increasing momentum.
Wave Extensions
Extensions occur when one impulsive wave becomes significantly longer and more powerful than the others.
Most commonly, wave 3 extends, creating the longest and most explosive leg.
An extended wave subdivides into a clear, elongated 5‑wave pattern.
The other two impulsive waves remain shorter and more proportional.
Extensions highlight where the market’s strongest momentum is concentrated.
Elliott Wave Outlook: PLTR Daily Chart Analysis March 09, 2026
As we can see, the impulse we expected ended in the projected zone. In addition, both wave (III) and wave (V) extended. The structure is not ideal because wave IV retraced deeply. Nevertheless, it still follows all Elliott Wave impulse rules.
Because of the sharp correction in the stock, we now believe a Grand Super Cycle has completed. However, the current market structure does not provide clear trading opportunities. The stock has retraced enough to suggest the correction may already be finished. Therefore, prices could resume the bullish trend from current levels.
However, we cannot rule out further downside in the correction. Two possible scenarios could still unfold. First, the stock could rally to retest recent highs before falling below 126.23. If that happens, prices could decline toward the $104-$80 zone. This move would likely complete wave ((II)) before the bullish trend resumes.
Alternatively, wave (b) may have already ended. In that case, the stock could continue moving lower from current levels. Therefore, the current structure still limits new trading decisions. For now, investors should watch whether price breaks below the 126.23 level of wave (a). If that occurs, potential buying opportunities could emerge between $104-$80 area.
Source: https://elliottwave-forecast.com/stock-market/palantir-pltr-elliott-wave-cycle-complete/