CRM dominated by bulls lifting the market higher throughout the day
Salesforce.com Inc (CRM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CRM ended Thursday at 154.73 gaining $7.67 (5.22%) on low volume, significantly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CRM as at Mar 26, 2020):
Thursday's trading range has been $7.35 (4.96%), that's below the last trading month's daily average range of $10.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CRM. Prices continued to consolidate within a tight trading range between 143.18 and 158.02 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market managed to close above the 20-day moving average at 152.41 for the first time since February 21st. Prices are trading close to the key technical resistance level at 163.12 (R1). After having been unable to move lower than 146.96 in the prior session, the share found buyers again around the same price level today at 147.73. The last time this happened on Monday, CRM gained 9.34% on the following trading day.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 158.02 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Salesforce. com. Out of 85 times, CRM closed higher 54.12% 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 68.24% with an average market move of 0.96%.