CRM finds buyers around 175.45 for the third day in a row
Salesforce.com Inc (CRM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CRM ended the week 3.81% higher at 177.85 after gaining $2.59 (1.48%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.15 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 May 8th, CRM gained 3.85% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $3.19 (1.81%), that's far below the last trading month's daily average range of $5.25. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRM. Prices continued to consolidate within a tight trading range between 172.13 and 179.14 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The stock found buyers again today around 175.45 for the third trading day in a row after having found demand at 174.93 in the previous session and at 174.90 two days ago.
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 close-by swing high at 179.14 where further buy stops could get activated. As prices are trading close to May's high at 183.30, upside momentum might accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Salesforce. com. Out of 573 times, CRM closed higher 56.37% 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 59.16% with an average market move of 1.09%.