Palantir Technologies Inc ( PLTR ) shares are trading lower Wednesday as the stock continues to pull back following a strong run in recent weeks. Here’s what you need to know.

What To Know: Palantir ( PLTR ) shares surged to new all-time highs earlier this month after the company beat analyst estimates on the top and bottom lines for the eighth straight quarter, reporting second-quarter revenue of $1.004 billion versus estimates of $939.71 million, and adjusted earnings per share of 16 cents versus estimates of 14 cents.

Revenue was up 48% year-over-year as U.S. Commercial revenue jumped 93% year-over-year and U.S. Government revenue increased 53% year-over-year.

Palantir ( PLTR ) guided for third-quarter revenue of $1.083 billion to $1.087 billion versus estimates of $981.1 million. The company also raised its full-year guidance to a range of $4.14 billion to $4.15 billion versus estimates of $3.9 billion.

After riding a wave of momentum to approximately $190, shares have faced selling pressure in recent trading sessions. Citron’s Andrew Left announced a short position against Palantir ( PLTR ) last week, suggesting that the stock had become “beyond overvalued.”

In a research report published earlier this week, Citron argued that Palantir ( PLTR ) should be trading at $40 when comparing the company to OpenAI.

“It should be noted that even at a 17x sales multiple, OpenAI has the highest multiple of any scaled SaaS stock in the world, and that number in itself is extreme. This means that at $40, PLTR would still be expensive,” Left wrote in the report.

The recent volatility in Palantir ( PLTR ) shares has captured the attention of retail traders and investors. The recent price movement indicates selling pressure as the stock approaches critical support levels.

Palantir’s short interest has increased by $2.8 billion this year. Short interest currently sits at 2.54%, according to data from Benzinga Pro. The stock finds support at $150.00, a level that has previously held firm, while resistance is identified at $157.75, where selling pressure has emerged. A breach below $150.00 could pave the way for further declines, whereas a move above $157.75 might signal a bullish reversal.

The Relative Strength Index (RSI) stands at 38.50, suggesting the stock is nearing oversold conditions, which could prompt a rebound if buying interest resurfaces. Meanwhile, the Moving Average Convergence Divergence (MACD) reveals a bearish crossover, with the signal line at 1.25 and the MACD line at 0.85, reinforcing the current downtrend.

Market structure analysis shows a pattern of lower highs and lower lows, confirming a short-term bearish trend. Analyst ratings reflect a neutral sentiment. Recent analyst changes include an upgrade from Sell to Hold from Deutsche Bank, an Overweight rating and price target of $182 from Piper Sandler and Neutral ratings and price targets ranging from $155 to $165 from Cantor Fitzgerald and UBS. Wedbush has a Street-high price target of $200 on Palantir ( PLTR ) shares.

Benzinga Edge rankings show mixed measures for Palantir ( PLTR ), with a low Value ranking of 2.69/100, but a high Growth ranking of 95.06/100 and a strong Momentum ranking of 98.62/100.

PLTR Price Action: Palantir ( PLTR ) shares were down 9.6% at $142.55 at the time of publication on Wednesday, according to Benzinga Pro. The stock is now down about 15% over the past week.

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