Palantir Technologies Inc. PLTR shares were trading lower Tuesday amid overall market weakness. Growth stocks have been dipping as bond yields rise. The stock looks to be nearing a key support level, looking for a bounce.

Palantir was down 6.97% at $25.56 at last check.

Palantir Daily Chart Analysis

• The stock broke out of the ascending triangle pattern and is now dipping back to a possible support level. This key support level needs to hold or the stock could be in trouble.
• The $25 price level was an area where the stock had struggled to cross above in the past. Now as the price is above this area, this stock is looking to hold this level as an area of support.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) saw a strong dip the past few days and crossed below the middle line. This shows the past couple days the stock has seen more selling pressure than buying pressure.

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What’s Next For Palantir?

Bullish traders are hoping to see the stock bounce off the $25 level. If it's unable to do so, bulls are looking to see a bounce at the higher low trendline and start heading higher. Bulls would like to see the RSI start to push back higher once again.

Bearish traders are looking to see the stock crack below the higher low trendline and start to head lower. This could be a possible sign that the stock is starting to form a downtrend.