CRM breaks back above 20-day moving average
Salesforce.com Inc (CRM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CRM ended the month 4.01% higher at 194.85 after gaining $3.15 (1.64%) today on low volume, outperforming the S&P 500 (0.77%). Trading up to $2.33 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CRM as at Jul 31, 2020):
Friday's trading range has been $4.31 (2.23%), that's below the last trading month's daily average range of $5.43. 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.
The market managed to close back above the 20-day moving average at 192.41. When this moving average was crossed above the last time on Wednesday, CRM actually lost -0.99% on the following trading day.
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 202.82, upside momentum could speed up should Salesforce. com 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 Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Salesforce. com. Out of 138 times, CRM closed higher 52.17% 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 61.59% with an average market move of 1.12%.