CRM climbs to highest close ever
Salesforce.com Inc (CRM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CRM ended the week 2.28% higher at 189.95 after gaining $1.31 (0.69%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 189.95 marks the highest recorded closing price ever. Trading up to $1.25 lower after the open, Salesforce. com managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 4th, CRM actually lost -1.51% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CRM as at Feb 14, 2020):
Friday's trading range has been $2.15 (1.14%), that's far below the last trading month's daily average range of $3.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CRM. Prices continued to consolidate within a tight trading range between 186.77 and 191.05 where it has been caught now for the last three trading days.
After having been unable to move lower than 188.42 in the prior session, the stock found buyers again around the same price level today at 188.10.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 191.05 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 186.77 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Salesforce. com. Out of 548 times, CRM closed higher 54.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.22% with an average market move of 1.31%.