CRM unable to break through key resistance level
Salesforce.com Inc (CRM) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CRM ended Thursday at 192.53 edging higher $0.64 (0.33%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 192.53 marks the highest recorded closing price since February 20th. Trading $2.23 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 02, 2020):
Thursday's trading range has been $3.10 (1.6%), that's far below the last trading month's daily average range of $5.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CRM.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on June 17th, CRM actually gained 3.45% on the following trading day.
Unable to break through the key technical resistance level at 194.09 (R1), Salesforce. com closed below it after spiking up to 195.39 earlier during the day. The failure to close above the resistance could increase that levels significance 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 might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Salesforce. com. Out of 442 times, CRM closed higher 59.28% 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 59.50% with an average market move of 1.50%.