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

Core Viewpoint - Palantir Technologies Inc. (NASDAQ: PLTR) stock has been experiencing a downtrend since reaching an all-time high after its quarterly earnings report on November 3, with technical indicators suggesting a potential bearish formation known as a death cross if selling pressure continues [2][3]. Technical Analysis - A death cross occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, and while Palantir has not yet reached this point, several signals indicate a potential crossover [3]. - As of midday trading on November 20, the 50-day SMA is approximately $180.92, while the 100-day SMA is around $169.88, slightly above the current stock price of $166.50. The 200-day SMA would serve as the next major support level if selling pressure persists [4]. - Trading volume shows declining participation on down days, supporting the narrative of a broader rotation out of AI and growth technology stocks, which may increase the likelihood of a bearish crossover if the stock declines further into late November and early December [5]. Company Fundamentals - Despite the technical challenges, Palantir remains fundamentally strong, with ongoing growth in recurring revenue and contract acquisitions from government and commercial customers [2][6]. - The company is experiencing impressive growth rates, which distinguishes it from many unprofitable tech firms where a death cross typically signals an exit point for investors [6][7]. Long-Term Outlook - A longer-term perspective shows that despite recent volatility, Palantir stock is still in a multi-year uptrend characterized by higher highs and higher lows when viewed over one year or more [8].