Salesforce Chart Projects $100 Target Hours Before Report

By | August 22, 2017

Salesforce.com (CRM) is expected to beat on top and bottom lines when the company reports earnings after the close Tuesday. The stock broke through its 2015 high in April, and continued on trend, moving up to the $92 area and booking a 35% gain in the first half of the year.

Since then, it has made a series of higher lows under the $92 resistance level, forming a rising triangle pattern. Resistance is being retested again in today’s session and if it is broken and holds after the report is released, Salesforce shares should be headed toward the $100 level.

The daily chart shows the rally in the first half of the year, and then the consolidation phase that followed and formed the triangle pattern. Moving average convergence/divergence has been tracking lower reflecting the loss in positive price momentum, but it has made a bullish crossover and looks ready to break above a downtrend line. The relative strength index is flat but above its 21-period average and centerline.

Investor confidence in the stock is evident by the positive money flow readings. Accumulation/distribution has remained above its rising signal average and Chaikin money flow is well into positive territory. The Chandre Trend Meter uses multiple indicators over six different Investor confidence in the stock is evident by the positive money flow readings. Accumulation/distribution has remained above its rising signal average and Chaikin money flow is well into positive territory. The Chandre Trend Meter uses multiple indicators over six different time frames and assigns a single number to a stock to determine trend strength. It is currently above the 90 level, suggesting CRM is still in a strong uptrend.

A triangle pattern breakout projects an upside price objective which is measured by taking the height of the triangle and adding it to the resistance level. It targets the $99 area, but as is often the case, as a stock nears the $100 level, the magnetic-like pull of a large round number takes over.

CRM is a buy after a post earnings confirmed break above $92 triangle resistance using a trailing percentage stop, and a $100 target price.

(This article was published on TheStreet.com on August 22.)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.