Michael Burry Charts 58% Palantir Plunge, Targets $60 Support After $142.91 Peak
Burry’s head-and-shoulders chart predicts Palantir could fall from $142.91 to a landing area between $50 and $60, with an initial support level near $80 implying a 58% drop. He holds 50,000 puts at a $50 strike expiring in 2027, signaling sustained bearish conviction.
1. Head & Shoulders Pattern Indicates 58% Downside
Michael Burry’s technical analysis outlines a head-and-shoulders reversal forming a left shoulder, head and right shoulder. From the recent peak at $142.91, the pattern targets a support level near $80 and a landing zone between $50 and $60, implying a 58% decline.
2. Massive Put Option Bet Reinforces Bearish Outlook
He holds 50,000 put options at a $50 strike expiring in 2027, purchased at $1.84 each, underscoring his sustained bearish conviction. This aligns with his recent shutdown of Scion Asset Management after market trends diverged from his assessments.
3. Underperformance Highlights Downside Pressure
Palantir shares have dropped 19.6% year-to-date and 23.6% over the past six months, lagging the Nasdaq 100’s gains. The stock closed at $142.91 on February 10, despite a 5.16% intraday rise and a 1.02% after-hours uptick.