PLTR News: Palantir Technologies tumbles as OPEX week pins markets

NYSE:PLTR is officially in trouble as the broader growth sector sell off on Wednesday pushed the stock down towards another support area. Shares of Palantir fell by 3.96% on Wednesday, and closed the trading session at $21.56. It has been a bloody week for Palantir so far and it just happens to coincide with OPEX, or the week where options contracts expire for the month of July. OPEX week has historically caused the markets to remain stagnant as market makers attempt to hold prices to maximize profits from writing options contracts. 

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An interesting piece of news hit the markets last week as the Department of Defense officially called off its Jedi Cloud contract with Microsoft (NASDAQ:MSFT) that is valued at an estimated $10 billion. Microsoft won the contract with its Azure cloud services, beating out Amazon (NASDAQ:AMZN) and its AWS platform in the end. Many have pointed at Palantir as a potential threat for the contract given its ongoing relationship with the U.S. government. Palantir has recently secured deals with the FAA and the U.S. Army among numerous other government agencies, and adding the Department of Defense wouldn’t be out of the realm of possibilities.

PLTR stock forecast

Palantir traders are watching the $21.00 price level as the final level of support for the stock before it could plummet below the $20.00 price barrier. Thus far, Palantir has broken down through all previous levels of support and given the current market sentiment towards growth stocks, Palantir may need to fall further before reversing this downward trend into bearish territory.