Palantir’s (PLTR) chart just cracked. Salesforce (CRM) is still sliding toward its next test.
Palantir stock dropped to a one-year low Monday and continued to edge lower Tuesday morning, putting it on track for a fifth straight decline. Salesforce stock is posting a small bounce, setting up to snap a 14-day losing streak, the worst run in the stock’s history.
The charts still look rough.
Palantir’s first line is near $125, the old floor of its prior trading range. Bulls need the stock back above that level fast to argue the breakdown was a bear trap, or a failed move lower that forces sellers to chase the stock back up.
That is not happening yet.
The stock has struggled to bounce from current lows. The 200-day moving average — the purple line in the chart above — has rolled over to the downside, and the daily relative strength index, or RSI — at the bottom of the chart — has not yet declined to levels that would suggest a strong bounce is near.
RSI is a momentum gauge, and readings below 30 are often treated as oversold. But buying on oversold readings works better when the larger trend indicated by the 200-day moving average is still rising. Palantir’s is not.
Salesforce is a slower version of the same problem.
The stock has fallen to fresh three-year lows over the past few sessions, with its 40-week moving average sloping lower. The 40-week average is roughly the weekly chart version of the 200-day average, since there are about five trading days in a week.
The next potential floor is around $125 to $130, but even that comes with a warning. If weekly RSI pushes below 30 into that zone, it would mark a fresh four-year low in that momentum gauge, which makes any bounce look more suspect.
This is the trap software investors have seen before. In a downtrend, rallies fade, dip buyers get punished, and old support can turn into new resistance.
The broader software group is not helping.
The iShares Expanded Tech-Software Sector ETF (IGV) is down about 13% this month, 17% this year, and 25% below its closing high, according to AlphaSpace data. The software comeback bid was already fading before the latest AI rout hit the tape.
For Palantir, the line is $125. For Salesforce, it is $125 to $130. Until those levels are reclaimed or defended, software’s rebound is still awaiting a verdict.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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