C3.ai stock faces the death cross – a sign of problems for the AI ​​pioneer? – C3.ai (NYSE:AI)

C3.ai Inc. AIknown for its innovative focus on artificial intelligence in enterprises, is showing signs of trouble as its stock hits a Death Cross.

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For those unfamiliar, a death cross occurs when a stock's short-term moving average falls below its long-term moving average, often indicating a bearish trend. This technical indicator, coupled with other warning signals in C3.ai's trading patterns, suggests that investors should be cautious.

The pivotal points of C3.ai: A story of constant evolution

Founded in 2009 by Thomas SiebelC3.ai has undergone several transformations over the years. Originally launched as C3 Energy to serve the smart grid market, the company was renamed C3 IoT in 2016 to capitalize on the growing Internet of Things (IoT) market.

But the biggest shift came in 2019, when the company focused on artificial intelligence and rebranded itself as C3.ai. This final transition positioned the company as a leader in AI and culminated in its IPO through a reverse merger with a special purpose acquisition company (SPAC), pushing its valuation to over $10 billion.

While adaptability is often seen as a strength, C3.ai's frequent changes of direction have raised doubts about its long-term vision.

This leads investors to question whether the company is truly committed to AI or simply following the latest market trends. These concerns are evident in the stock's recent performance: AI shares are down 15.07% year-to-date and down 16.46% over the past year.

C3.ai share price indicates further downward movement

From a technical analysis perspective, C3.ai is currently facing several bearish signals. The stock is trading below its 5-day, 20-day, and 50-day exponential moving averages, indicating a strong bearish trend.

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The stock price is also below its eight-day moving average of $24.91 and the 20-day SMA of $24.93, adding to the bearish sentiment. The 50-day SMA is at $27.13 and the 200-day SMA is at $27.27, both above the current price of $24.47, confirming the downtrend.

Also read: Smart money bets on C3.ai options

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Other technical indicators such as the Moving Average Convergence Divergence (MACD) at minus 0.72 and the Relative Strength Index (RSI) at 40.83 suggest that the stock is neither overbought nor oversold, meaning it has not yet reached levels that could trigger a major buying spree.

In addition, the Bollinger Bands (25) are between $22.88 and $27.95, suggesting that there will be limited upside in the short term as the stock continues to move in the lower bearish band.

While some investors see potential in C3.ai's adaptability and continued focus on AI, technical indicators suggest caution. With the stock on the brink of a death cross, investors might be wise to keep a close eye on the company's next moves before deciding to buy in.

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