CRM finds buyers at key support level
Salesforce.com Inc (CRM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CRM finished the month 7.17% higher at 187.33 after gaining $4.00 (2.18%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 183.71, the share confirmed its breakout through the prior session high after trading up to $4.18 above it intraday.
Daily Candlestick Chart (CRM as at Jun 30, 2020):
Tuesday's trading range has been $4.76 (2.59%), that's slightly below the last trading month's daily average range of $5.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, CRM actually lost -2.75% on the following trading day.
After trading down to 183.13 earlier during the day, Salesforce. com bounced off the key technical support level at 183.30 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 195.72, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Salesforce. com. Out of 461 times, CRM closed higher 57.05% 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 55.31% with an average market move of 0.66%.