CRM breaks below Thursday's low
Salesforce.com Inc (CRM) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
CRM ended the week 4.77% higher at 146.00 after losing $8.73 (-5.64%) today, significantly underperforming the S&P 500 (-3.37%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 147.73, Salesforce. com confirmed its breakout through the previous session low after trading up to $2.82 below it intraday.
Daily Candlestick Chart (CRM as at Mar 27, 2020):
Friday's trading range has been $6.54 (4.34%), that's far below the last trading month's daily average range of $10.82. 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.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Black Candle showed up on Wednesday, CRM actually gained 5.22% on the following trading day.
The market closed back below the 20-day moving average at 151.19.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Salesforce. com. Out of 403 times, CRM closed higher 58.56% 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 60.79% with an average market move of 1.48%.