Palantir Technologies Inc. (NASDAQ: PLTR) stock has been on a downtrend since its all-time high after the Nov 3 earnings report. Technical indicators suggest a potential death cross if selling pressure continues, with the 50-day SMA rolling over and trading volume declining.

A death cross, marked by the 50-day SMA crossing below the 200-day SMA, may not be bearish for PLTR stock due to its growth and revenue. The long-term uptrend remains intact, providing buying opportunities at lower levels in a broad market rotation.

The sell-off in AI stocks like Palantir reflects a normalization in the market, with a rotation from growth to defensive sectors and a market-wide derating of AI valuations. Buying opportunities may arise in the $160-165 support range or near the 200-day SMA.

Despite short-term technical pressure, Palantir’s fundamentals and industry positioning suggest a favorable outlook beyond near-term volatility. Previous death-cross setups have led to significant gains as the company scaled into profitability and expanded commercially.

Read more at Nasdaq: Why Palantir Slide May Be a Setup for a Long-Term Opportunity