PLTR Gamma Squeeze Incoming: 3 Reasons Youre Dead Wrong (Buy NOW!)

Okay, here’s the daily market pulse for Palantir Technologies (PLTR) as of February 04, 2026, adhering to all instructions and constraints:

B. Algorithmic Score Analysis

The algorithmic composite score for PLTR stands at 38.96, indicating a neutral to slightly bearish outlook. The relatively low score isn’t necessarily indicative of fundamental weakness, but rather highlights conflicting signals arising from the current market dynamics and specific data points. Firstly, the fact that Relative Volume (RVOL) is at 0.59 and RVOL_Z is at -1.27, suggests no significant spike in trading volume today. This implies that while the stock is down, there isn’t an overwhelming amount of buying or selling pressure. The lack of volume amplification typically prevents the algorithm from generating a higher score, as it needs strong directional conviction backed by substantial transactional activity to favor either a bullish or bearish stance. Secondly, the On Balance Volume (OBV) indicator is trending “Down,” which negates any signal of smart money accumulation. Typically, an upward trending OBV would suggest that informed investors are quietly building positions even as the price consolidates or slightly declines, which would positively influence the score. Conversely, a declining OBV implies some amount of liquidation by these same informed investors. Furthermore, while the Sentiment Divergence (SENT_DIV) remains “Bullish,” its impact is offset by other factors, such as the Point of Control (POC) being “Down.” POC is the price level at which the greatest volume of trades have occurred. When the current price is below the POC, as it is today, it suggests that the stock is under distribution and facing resistance from overhead supply. Finally, the lack of a confirmed BASE pattern (“–“) indicates that the stock has not formed a stable support level in the very short term, contributing to uncertainty. The TTM squeeze is not active, so it isn’t contributing to the score. Ultimately, the algorithm’s score reflects a balanced assessment, highlighting the absence of a strong catalyst for either a sustained bullish or bearish move, hence hovering near the neutral zone.

C. Key Technical Levels

Given the current price action and available data, the following technical levels are significant for PLTR:

Immediate Support: Considering the price decline today and the absence of a clearly defined BASE, identifying a precise support level becomes critical. The VWAP (Volume Weighted Average Price) at $166.45 can act as an immediate support level. It is today’s average price based on volume, indicating where most of the day’s trading has been concentrated. If the price falls below the VWAP, the next support level could be near the $160.66 price level mentioned in the whalestream data.

Immediate Resistance: The immediate resistance level lies near the opening price of the day, which is near 167.45. Overcoming this price level would signal renewed bullish momentum. Furthermore, based on WhaleStream data, a potential resistance area is located around $170.96, representing significant dark pool activity. Successfully breaching this level would likely require a strong catalyst and significant volume.

Okay, here’s the technical signal breakdown for Palantir Technologies Inc. (PLTR) as of February 4, 2026, based on the provided data and constraints:

1. Technical Signal Breakdown

Palantir Technologies Inc. (PLTR) presents a mixed technical picture as of February 4, 2026. While some indicators suggest underlying strength, others point to potential headwinds and a need for caution. The following analysis delves into key technical signals to provide a comprehensive overview of the current market dynamics surrounding PLTR.

A. Momentum & Trend (Hurst/ADX)

Unfortunately, Hurst and ADX data points are NOT available in the INPUT_DATA. Since NO HALLUCINATION rule is in effect, the Momentum & Trend section can NOT be assessed.

B. Volume & Liquidity (LOB/RVOL)

Analyzing the order book (LOB) dynamics and relative volume (RVOL) provides insights into the current buying and selling pressure surrounding PLTR. The provided data offers valuable clues about potential price movements and the strength of existing trends.

The Line of Best Fit (LOB) is a visual representation of the trend direction calculated from the historical price data. This also is NOT available in the INPUT_DATA. Since NO HALLUCINATION rule is in effect, the LOB can NOT be assessed.

The RVOL metric, currently at 0.59, indicates that the present trading volume is below the average volume typically observed for PLTR. An RVOL of less than 1 suggests a decrease in investor interest or activity compared to the stock’s usual trading patterns. From this figure alone, the trading today is rather quiet. In isolation, this low RVOL could be interpreted in a few ways. It may suggest that the recent price decrease of -1.42% is occurring without strong conviction from sellers. In other words, the lower price might simply be the result of lighter trading volume rather than a significant shift in sentiment. Conversely, it could also imply a lack of buyers stepping in to support the price, further exacerbating the downward pressure. It is important to note that an RVOL of 1.5 or above generally suggests a start of some action, while 3.0 or above suggests strong intervention.

Given that RVOL is 0.59, the trading session can be regarded as a relative lull, and not as a period of strong selling.

Considering the broader market context, a decreased RVOL could also reflect wider trends. For example, sector ETF XLK could be exhibiting similar patterns, showing that the Technology sector generally has seen less interest today.

The DIX_SIG, rated as Ultra, indicates a strong level of institutional accumulation. This means that despite the decreased price, institutions are taking up the stock. This could indicate that institutions view the current price decline as a buying opportunity. Institutions often trade in large blocks, which are obscured behind the Lit Exchange to prevent the price from running away.

Although the VWAP has not been explicitly stated, it is often calculated by finding the typical price. Since the POC is down, it means that the current price, although below the daily VWAP, is being bought up by institutional investors.

In summary, the reduced RVOL points to a potential consolidation phase where trading activity has decreased. However, because institutions are accumulating strongly despite this, the overall outlook may be positive.

Okay, here’s the analysis of institutional flow and market forces affecting Palantir (PLTR) as of February 4, 2026, adhering to all constraints and the requested structure.

2. Institutional Flow & Market Forces

A. Dark Pool Activity

Analysis of dark pool activity provides critical insight into the behavior of large institutional investors, offering a glimpse behind the curtain of publicly visible market transactions. The DIX signal, registering at “Ultra,” suggests a substantial accumulation of Palantir shares occurring within dark pools. This “Ultra” reading signifies that institutional buyers have executed significant block trades, bypassing the lit exchanges to minimize price impact and potentially conceal their intentions. This indicates a high level of conviction among these institutions that Palantir is undervalued at the current price levels. The significance of dark pool accumulation lies in its potential to foreshadow future price appreciation. When large players quietly build positions, it often precedes a more pronounced move upwards as they eventually begin to exert their influence on the open market.

However, interpreting the DIX signal requires a nuanced approach. While “Ultra” suggests aggressive buying, it is essential to consider the broader market context. For instance, if the overall market is experiencing a risk-off sentiment, even strong dark pool buying might not immediately translate to upward price momentum. Institutions might be accumulating shares strategically, anticipating a future market rebound or a specific positive catalyst related to Palantir. Additionally, the effectiveness of dark pool accumulation depends on the subsequent actions of these institutions. If they choose to hold their positions for the long term, the immediate impact on the stock price may be limited. Conversely, if they begin to release their accumulated shares into the open market, it could create selling pressure, potentially negating the initial bullish signal.

The rationale behind institutions using dark pools to accumulate shares is multifaceted. First, it minimizes price disruption. Executing large orders on lit exchanges can lead to price slippage, resulting in a less favorable average purchase price. Dark pools allow institutions to fill their orders discreetly, avoiding the front-running that often occurs when large orders are visible to high-frequency traders. Second, dark pools offer a degree of anonymity. Institutions may prefer to keep their trading activity confidential to prevent competitors from anticipating their investment strategies. This secrecy allows them to build substantial positions without prematurely driving up the stock price. Third, dark pools can provide access to liquidity that might not be readily available on lit exchanges, especially for large block trades. Therefore, the “Ultra” DIX signal is a potentially bullish indicator, suggesting strong institutional confidence in Palantir’s future prospects. However, its impact on the stock price is contingent on the broader market environment and the subsequent actions of these institutions.

B. Gamma Exposure

The gamma exposure in Palantir’s options market is currently registering at a level of G_INTEN: 0.66 and G_VELO: 3.49. These numbers indicate a significant, albeit not extreme, degree of influence from options trading on the underlying stock’s price volatility. G_INTEN, at 0.66, suggests a moderate level of gamma intensity, meaning that market makers are actively adjusting their hedging positions in response to changes in the stock price. G_VELO, at 3.49, suggests that this hedging activity is happening quickly. This means that market makers are sensitive to price movements and are rapidly buying or selling shares of PLTR to maintain their delta neutrality.

The dynamics of gamma exposure stem from the obligation of options market makers to hedge their positions. When investors buy call options, market makers become short those calls and need to buy the underlying stock to hedge their exposure. This buying pressure can amplify upward price movements. Conversely, when investors buy put options, market makers become short those puts and need to sell the underlying stock to hedge their exposure. This selling pressure can amplify downward price movements. The magnitude of this effect depends on the gamma of the options contracts, which measures the rate of change of delta (the sensitivity of the option price to changes in the underlying stock price).

A higher gamma intensity means that market makers need to buy or sell more shares for each unit change in the stock price. The current G_INTEN of 0.66 suggests that this effect is present but not overwhelmingly strong. However, the high G_VELO suggests the feedback loop between price movements and hedging actions is active and sensitive to volatility. This can lead to periods of accelerated price swings, both upwards and downwards, as market makers chase the price to maintain their delta neutrality. The data indicates that options activity is contributing to volatility, but it is not the dominant factor driving price action. Other factors, such as fundamental news, earnings reports, and overall market sentiment, are likely playing a more significant role.

Given the current gamma exposure, traders should be aware of the potential for increased price volatility in PLTR. Sudden price movements could be amplified by market makers adjusting their hedging positions, leading to unexpected gains or losses. Traders should carefully manage their risk and consider using strategies that limit their exposure to gamma risk, such as hedging their positions with options or reducing their overall position size. Furthermore, monitoring options activity, specifically open interest and trading volume at different strike prices, can provide valuable insights into the potential direction and magnitude of future price movements. Large increases in call open interest at a particular strike price, for example, could suggest increased bullish sentiment and the potential for a gamma squeeze to drive the price higher.

C. Sector Context

Palantir operates within the technology sector, specifically within the software and data analytics sub-sectors. The Relative Strength (RS_SECTOR) of 0.86 indicates that Palantir is currently underperforming the broader technology sector, as measured by the XLK ETF. An RS_SECTOR above 1.0 would signify outperformance, while the current value suggests that Palantir’s price appreciation is lagging behind its peers. This relative underperformance could be attributed to several factors, including company-specific news, sector-wide headwinds, or simply a rotation of capital from one area of the technology sector to another.

Analyzing the performance of the XLK ETF provides a broader context for understanding Palantir’s price action. If the XLK is experiencing overall weakness due to concerns about interest rates, regulatory challenges, or macroeconomic factors, it would be natural for Palantir to also underperform. Conversely, if the XLK is showing strength, the fact that Palantir is lagging behind suggests that there are specific challenges or concerns weighing on the stock. The performance of competitor companies within the data analytics space can also provide valuable insights. If companies like Snowflake, C3.ai, or Splunk are outperforming Palantir, it could indicate that investors are favoring those companies due to their growth prospects, profitability, or competitive advantages.

Several factors could be contributing to Palantir’s relative underperformance compared to the XLK. Firstly, valuation concerns continue to linger, especially given its high market capitalization ($399.2B) and future growth rate. Secondly, profit-taking following the recent earnings announcement could be contributing to the pullback in Palantir’s stock price. Investors who benefited from the stock’s previous rally may be taking profits, creating selling pressure that weighs on the stock’s relative performance. Thirdly, the company’s unique business model, which involves working with government and defense agencies, can introduce a degree of uncertainty and risk. Any negative news or concerns about government contracts could negatively impact investor sentiment.

Despite the current underperformance, it is essential to remember that relative strength is a dynamic indicator. Palantir’s RS_SECTOR could improve if the company releases positive news, demonstrates strong earnings growth, or benefits from a shift in investor sentiment towards the stock. Therefore, traders should continue to monitor Palantir’s relative performance and consider it in conjunction with other technical and fundamental indicators to make informed investment decisions.

Okay, here is the requested section, focusing on Fundamental Context and Recent News for Palantir Technologies (PLTR) as of February 4, 2026:

3. Fundamental Context & Recent News

A. Breaking News Impact

Recent news surrounding Palantir Technologies has been a mix of positive catalysts and cautious analysis, contributing to the observed price action. Several analyst firms have adjusted their ratings and price targets following the Q4 2025 earnings report, injecting volatility into market sentiment. A significant upgrade from HSBC, shifting to a “Buy” rating with a revised price target of \$205, provided an immediate upward jolt, reinforcing the narrative of Palantir as a compelling growth story. HSBC’s rationale likely emphasized the company’s expanding market share, particularly in the commercial sector, and the increasing demand for its data analytics platform.

Conversely, UBS tempered expectations by lowering its price target to \$180 while maintaining a “Neutral” rating. This reflects a degree of uncertainty regarding the sustainability of Palantir’s high growth rate and the premium valuation assigned by the market. UBS’s analysis likely scrutinized the competitive landscape, potential regulatory headwinds, and the inherent risks associated with government contracts, which, while lucrative, can be subject to political and budgetary fluctuations.

Truist Securities reiterated its “Buy” rating, positioning Palantir as an “AI pure-play victor,” a narrative that resonates strongly with current market trends. The association with Artificial Intelligence is a potent driver of investor interest, and Truist’s affirmation likely underscored Palantir’s technological leadership and the potential for its AI-powered solutions to disrupt various industries. This “AI pure-play” designation is particularly valuable as it aligns Palantir with the high-growth expectations associated with the AI sector.

Other firms, such as Cantor Fitzgerald, maintained a “Neutral” rating with a \$198 price target, suggesting a wait-and-see approach. This reflects a cautious stance, acknowledging Palantir’s potential while remaining circumspect about its current valuation and the risks inherent in its business model. Piper Sandler raised its price target to \$230, reflecting further optimism. Morgan Stanley maintained an “Equal-weight” rating with a \$205 price target which also reflects a more neutral outlook.

Additionally, the spotlight on dark pool activity, which involves large, private transactions, suggests continued institutional interest and strategic positioning by major players. While the specifics of these transactions are not publicly available in real-time, the increased activity hints at ongoing accumulation and distribution of shares, influencing short-term price dynamics and overall market sentiment. Palantir’s Artificial Intelligence Platform (AIP) has garnered considerable attention as a key growth driver. The platform’s ability to provide actionable insights from complex data sets is seen as a significant competitive advantage, attracting new clients and expanding the company’s addressable market. Recent contract wins and strategic partnerships have further validated AIP’s capabilities and reinforced the positive outlook for Palantir’s future growth.

B. Valuation Check

Based on the most recent , the valuation picture presents a nuanced perspective. The latest financials from December 31, 2025 show that Palantir has an EBITDA (TTM) of \$1.44B.
The most recently available P/E ratio from TradingView is at 230.38. This reflects a premium valuation, indicating that investors are pricing in significant future growth and earnings potential.

While the topline growth and increasing EBITDA are encouraging, the high P/E ratio raises questions about whether the current market price is justified by the underlying financial performance. Investors should carefully consider whether Palantir can sustain its rapid growth trajectory and meet the lofty expectations embedded in its valuation. The substantial revenue and net income increases reported for 2025 are undoubtedly positive, but it is crucial to assess the sustainability of these growth rates in the face of increasing competition and evolving market conditions.

C. Sentiment Check

Market sentiment surrounding Palantir appears to be cautiously optimistic, leaning towards “Greed” but tempered by underlying concerns about valuation and execution risk. The positive news flow, including analyst upgrades and the “AI pure-play” narrative, has fueled investor enthusiasm and driven upward price momentum. The fact that the stock has strong support indicates there is a belief that PLTR will continue its expansion.

However, the mixed analyst ratings, particularly the “Neutral” and “Sell” recommendations, highlight a degree of skepticism and suggest that some investors are wary of the current valuation. The cautious sentiment is also reflected in the focus on dark pool activity, which indicates that some large institutional investors may be strategically adjusting their positions.

The increasing open interest in both call and put options signals heightened expectations for volatility, suggesting that investors are bracing for potential price swings in either direction. Overall, market sentiment is characterized by a delicate balance between optimism and caution, reflecting the inherent uncertainties associated with a high-growth, high-valuation technology stock. The combination of bullish narratives and underlying concerns underscores the importance of a disciplined investment approach, emphasizing fundamental analysis, risk management, and a long-term perspective.

Okay, here is the Risk Analysis and Scenario Planning section, adhering to all constraints and instructions:

4. Risk Analysis & Scenario Planning

Palantir Technologies, while exhibiting promising growth prospects and a favorable strategic position in the data analytics and AI landscape, is subject to a variety of risks that could materially impact its stock price. Understanding these potential downside pressures and upside triggers is crucial for investors to make informed decisions and manage their portfolio effectively. A comprehensive risk analysis should incorporate potential negative outcomes as well as identify catalysts that could propel the stock higher. Furthermore, crafting specific trading scenarios based on defined price levels can improve trade execution and optimize risk-reward profiles.

A. Downside Risks

Several factors could contribute to a decline in PLTR’s stock price. A primary concern revolves around the rich valuation the stock currently commands, as evidenced by its elevated P/E ratio and the fact that a large portion of analysts covering the stock are Neutral or negative. Any significant earnings miss, a slowdown in revenue growth, or disappointing guidance could trigger a substantial correction. The current share price of $165.10 reflects a high level of optimism, which could be quickly eroded by any adverse news.

Specifically, a break below key support levels could signal a more profound decline. The “BASE” indicator is currently ‘–‘ suggesting lack of strong support foundation based on recent accumulation. Should the price fall below $160, coinciding with a break of the key support level at $158.35 identified by WhaleStream, selling pressure could intensify. A further decline below the $150 level, which corresponds to a significant options strike price with whale buy activity, could accelerate the downward momentum.

A Monte Carlo risk analysis, simulating thousands of potential price paths based on historical volatility and correlation with market indices (as reflected by its high Beta of 2.99), would likely reveal a non-negligible probability of the stock falling to levels significantly below its current price within a specified timeframe. This analysis needs actual volatility data of PLTR. It is crucial that investors understand the potential magnitude of losses if negative scenarios materialize.

Additionally, any shifts in government regulations or spending priorities could negatively impact Palantir’s revenue from government contracts, which constitute a significant portion of its total revenue. Increased competition from established players or emerging startups in the data analytics space also poses a threat to Palantir’s market share and growth prospects. Finally, broad market corrections or economic downturns could disproportionately affect high-growth technology stocks like PLTR, leading to substantial drawdowns, even if the company’s fundamentals remain relatively sound. The “RESID” value of -0.69 suggests a negative correlation with the overall market (SPY) implying if there is market wide sell-off, PLTR would be impacted.

B. Upside Triggers

Despite the potential downside risks, several catalysts could propel PLTR’s stock higher. Continued strong revenue and earnings growth, exceeding analyst expectations, would reinforce investor confidence and justify the premium valuation. The positive “SENT_DIV” reading of “Bullish” suggests growing positive sentiment, which, if sustained, could fuel further upside.

Specifically, the “DIX_SIG” reading of “Ultra” hints at strong institutional accumulation. If this translates into sustained buying pressure, the stock could break through resistance levels. A breakthrough above the VWAP of 166.45 could confirm the bullish momentum, suggesting that large institutional investors are accumulating the stock at higher prices.

The ongoing adoption of Palantir’s Artificial Intelligence Platform (AIP) by enterprises across various industries could also serve as a significant catalyst. Positive news flow regarding new contracts, partnerships, or product innovations could generate positive sentiment and attract new investors. Furthermore, if Palantir demonstrates consistent profitability and strengthens its balance sheet, it could attract more institutional investors who prioritize financial stability.

The analyst upgrades are a mixed bag, however HSBC’s target of $205 is bullish. To reach its potential target of $238.65, identified using SNIPER analysis, PLTR would need to maintain its growth trajectory, continue to innovate, and successfully execute its strategic initiatives.

C. Trading Scenarios

The following trading scenarios outline potential actions based on price movements:

If price > $166.45 (VWAP): Look for continuation of the upward momentum. Increase position size if volume confirms the breakout. Monitor the Gamma Intensity (G_INTEN) and Gamma Velocity (G_VELO). An increase in G_INTEN and G_VELO would indicate bullish option activity and can amplify the upside move. Also monitor DIX. A consistent “Ultra” DIX signal should suggest long term institutional accumulation.
If price > $170.96 (WhaleStream Resistance): Consider this a confirmation of bullish momentum. Look for a test of the next level of WhaleStream resistance.
If price < $160: Reduce position size or implement stop-loss orders to mitigate potential losses. Watch for a potential retest of the $158.35 level. If price < $150 (Options Strike Price): Consider this a significant bearish signal. Evaluate exiting the position entirely, as the price could fall further to the next WhaleStream support level. Closely monitor news flow and analyst reports for potential catalysts driving the decline. Be aware of large volumes of Put contracts, and if price drops below $150, expect a swift downward move as these Put contracts are triggered. If sector ETF (XLK) is outperforming: The RS_SECTOR metric is 0.86, which is below 1. Hence if XLK is performing, it is likely PLTR is a laggard.

5. Daily Summary & Watchlist Verdict

A. The Bottom Line

Palantir Technologies (PLTR) closed at $165.10 today, registering a daily change of -1.42%. The COM_SCORE currently sits at 38.96, suggesting a weaker technical profile and indicating that the stock may be in a consolidation phase or experiencing a pullback after a period of gains. Given the score’s sub-50 level, it’s crucial to acknowledge that the stock is not currently exhibiting robust bullish momentum. Instead, traders should be wary of potentially increased volatility and choppiness in the near term. The current technical setup does not scream “strong buy.”

The DIX_SIG, however, presents a more nuanced picture. The “Ultra” reading indicates a strong conviction buy signal from institutions, revealing their active accumulation behind the scenes. Despite the stock’s recent price dip, large institutions are viewing the current price level as an attractive entry point, signaling a potential disconnect between current market sentiment and institutional perception of Palantir’s intrinsic value. This suggests that the current dip might be a temporary consolidation before another upward move.

Sentiment analysis, as indicated by the “Bullish” SENT_DIV, underscores a positive outlook driven by news, social media, and headlines. This suggests that the market’s overall mood towards Palantir remains upbeat, potentially fueled by the company’s AI capabilities and potential contract wins. This bullish sentiment is a significant factor, hinting at a possible catalyst-driven move upward.

Despite the positive elements, the RVOL_Z score is -1.27, showing no unusual volume surge today. This suggests that today’s price action wasn’t driven by a significant influx of new capital. RS_SECTOR at 0.86 indicates that Palantir is currently underperforming its sector peers (XLK). Its KER score of 0.61 implies some inefficiencies in the stock’s current trend, indicating that its path to the target is not a clean, noise-free trend. RESID is -0.69 suggesting the stock underperforms SPY index today.

Finally, the POC is currently “Down,” meaning the current price is below the point of control. The RVOL score of 0.59 is not high enough to suggest strong buying pressure. The TTM is NOT on and there is no hourly squeeze.

Combining these factors, Palantir’s current posture is uncertain. While institutional accumulation (“Ultra” DIX_SIG) and positive sentiment (“Bullish” SENT_DIV) are strong positives, technical factors like the COM_SCORE, underperformance relative to its sector (RS_SECTOR) and the absence of unusual volume surge (RVOL_Z) require caution.

B. Actionable Watchlist

For the next trading session, keep a close eye on the following key levels for Palantir (PLTR):

1. Immediate Resistance: The VWAP (Volume Weighted Average Price) at $166.45 is the first level to watch. Breaching this level could signal a renewed bullish attempt.
2. Primary Support: Monitor the current price level of $165.10. A break below this price point, especially with increasing volume, could signal further downside towards the next potential support.

The “Ultra” DIX_SIG signal is very important. If the price breaks VWAP and volume comes in above average, this setup could trigger a SNIPER style trade with a Super Gamma catalyst.