Michael Burry, the investor famous for “The Big Short,” is turning cautious on Palantir $PLTR ( ▼ 3.11% ) . In a recent post, he pointed to what he sees as a classic head and shoulders pattern forming in the stock, a setup many technical traders view as a bearish signal.
The comment grabbed attention quickly, given Burry’s reputation for spotting major market turning points.
A Classic Technical Red Flag
The head and shoulders pattern is often interpreted as a sign that upward momentum is fading and a downtrend could follow. Burry paired that view with Fibonacci retracement levels, another tool traders use to estimate where a stock might find support or resistance.
On his chart, Burry marked around $84 as the next key support level. If selling pressure intensifies, he highlighted $54.50 as a potential deeper “landing area.”
Technicals Meet a High-Flying Stock
Palantir $PLTR has been one of the market’s most closely watched AI and data analytics plays, with shares making huge moves over the past year. That kind of run can make technical signals even more closely followed, especially when flagged by a high profile investor.
Burry added that he is “working on something” related to the stock, hinting that more detailed analysis or a broader thesis could be coming.
For now, his post serves as a reminder that even market favorites can face sharp pullbacks when sentiment and technical momentum start to shift.