Why Palantir Slide May Be a Setup for a Long-Term Opportunity

Palantir Technologies Inc. (NASDAQ: PLTR) stock has been in a downtrend since hitting an all-time high (ATH) after its quarterly earnings report on Nov 3. While a death cross isn’t guaranteed, technical indicators suggest the stock could approach this bearish formation if selling pressure continues.

A death cross is a technical chart pattern marked by the 50-day simple moving average (SMA) crossing below its 200-day SMA. Although Palantir isn’t there yet, several signals point to a potential crossover.

As of midday trading on Nov. 20:

• The 50-day SMA of approximately $180.92 is rolling over.
• The 100-day SMA (not shown) of approximately $169.88 has flattened and is now slightly above the current PLTR stock price of $166.50.
• The 200-day SMA would be the next major support level if selling pressure continues.

More broadly, trading volume shows declining participation on down days, supporting the ongoing narrative of a broad, purposeful rotation out of AI and “growthy” technology stocks.

This combination signals waning momentum and an increased likelihood of a bearish crossover if the stock moves lower into late November and early December.

Why the Death Cross May Not Be Bearish for PLTR Stock

For many unprofitable tech names with little revenue, a death cross is often a sign to exit. Palantir is a different case.

The company continues to grow at an impressive, some might say historic, rate—adding contracts with government and commercial customers that are providing durable, recurring revenue.

In cases like this, a death cross, while uncomfortable for investors, likely reflects short-term sentiment. The chart points to several reasons to believe this could be the case for PLTR stock.

Long-Term Uptrend Remains Intact

When in doubt, zoom out. The one-month chart looks ugly. Even the three- or six-month chart might raise eyebrows. But if you look over one year or more, it’s clear that PLTR stock continues to be in a multi-year uptrend market by higher highs and higher lows.

That means even if a death cross forms, the stock would only be retesting support at the lower end of a long-term channel—a spot that has provided strong buying opportunities.

Palantir Is One of Many AI Stock That Are Normalizing

The dominant narrative in the last month or so has been that the AI bubble is about to burst. That may or may not be true. However, the fact remains that many stocks, such as Palantir, have benefited from enthusiasm about AI adoption. This has shown up in strong demand for its AIP (Artificial Intelligence Platform).

But stocks don’t move in one direction. This sell-off seems like a healthy pause that reflects:

• Rotation from growth into defensive sectors
• Market-wide derating of elevated AI valuations
• A digestion phase after an extended overperformance

It’s also important to note that PLTR stock isn’t the only AI stock in a sell-off mode. This is the same pattern observed in other AI leaders, such as NVIDIA Corp. (NASDAQ: NVDA) and SuperMicro Computer Inc. (NASDAQ: SMCI), which entered multi-week correction phases despite strong fundamentals.

When to Buy the Dip in PLTR Stock

If you’re looking to buy the dip, here are two areas to watch:

• $160-165 support range: This sits near the 100-day SMA and matches price support from August and November.
• 200-day SMA area: This is a long-term support level where institutional buying interest typically increases.

This isn’t the first time investors have seen a death cross setup in PLTR stock. Over the past three years, every 20–30% drawdown in PLTR has been followed by significant upside in the subsequent six to 12 months. In fact, those who bought after prior death-cross setups in 2022 and 2023 saw major gains as the company scaled into profitability and accelerated commercial expansion.

While technical pressure may persist in the short term, Palantir’s fundamentals and industry positioning suggest a favorable outlook beyond the near-term volatility.

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The article "Why Palantir Slide May Be a Setup for a Long-Term Opportunity" first appeared on MarketBeat.