Key Trade to Watch Amid Salesforce's Early Gains
Salesforce is trading higher after beating estimates but is there an opportunity for traders?
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Salesforce CRM reported a non-GAAP EPS of $2.56 Wednesday night which beat estimates by $0.20 and revenue of $9.33 billion which beat by $100 million. CRM is trading higher in early Thursday dealings, but does that "move the needle"?
I reviewed the charts of CRM on Tuesday and expected the next move on CRM would be lower. Let's check and see if the bears will win out.
In this daily bar chart of CRM below, I can see that prices have been failing at the underside of the 200-day moving average line. CRM is trading higher in the pre-market Thursday but so far not above the 200-day line. The daily On-Balance-Volume (OBV) line still looks soft and edging lower. The Moving Average Convergence Divergence (MACD) oscillator is only slightly above the zero line.
In this weekly Japanese candlestick chart of CRM below, I can see the two most recent candles: one is a doji and the second one shows me an upper shadow on a bearish (red) candle. It will take a strong, bullish (white) candle to turn this chart bullish.
In this daily Point and Figure chart of CRM below, I can see that a trade at $268 or higher is needed to refresh the uptrend. That is the key trade to watch.
Bottom line strategy: Trading in CRM could be "touch and go" Thursday morning. I would let the first 90 minutes of trading to pass before making a decision.
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