Earnings are today after market close.
CRM is in a rising wedge but has broken up and out of rising wedges in the past without breaking the bottom trendline. The pattern is not valid unless the bottom trendline is broken. Down the road, after the break up from the rising wedge, CRM encountered a deep pull back and did break the bottom trendline of the wedge it blasted out of when inducted in to the DOW. But it was much later when this happened and CRM made a lot of gains before coming back to meet the bottom trendline of that rising wedge. I do not recall if earnings were due when that happened, just have noted sometimes a rising wedge can hurt you at earnings. Not always. Some stocks blast up and out of this pattern. SNPS did recently.
Rising wedges resemble triangles, but both trendlines slope up. The trendlines narrow at the apex creating a vacuum similar to triangles and contracting bollinger bands. Rising wedges interrupt supply and demand and are bearish in the end. But the end can be in the future or it can be any trading day.
The upper resistance line and lower support line converge as the pattern matures. Bearish confirmation of the pattern does not come until the support line is broken in a convincing fashion. While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias. However, the series of higher highs and higher lows keeps the trend inherently bullish. The final break of support indicates that the forces of supply have finally won out and lower prices are likely. In a strong stock, price usually finds a support level that exists inside the wedge. I have noticed strong stocks do not fall out as far as a weaker stock will.
No recommendation.
Scared money can equal lost money. Be safe.
CRM is in a rising wedge but has broken up and out of rising wedges in the past without breaking the bottom trendline. The pattern is not valid unless the bottom trendline is broken. Down the road, after the break up from the rising wedge, CRM encountered a deep pull back and did break the bottom trendline of the wedge it blasted out of when inducted in to the DOW. But it was much later when this happened and CRM made a lot of gains before coming back to meet the bottom trendline of that rising wedge. I do not recall if earnings were due when that happened, just have noted sometimes a rising wedge can hurt you at earnings. Not always. Some stocks blast up and out of this pattern. SNPS did recently.
Rising wedges resemble triangles, but both trendlines slope up. The trendlines narrow at the apex creating a vacuum similar to triangles and contracting bollinger bands. Rising wedges interrupt supply and demand and are bearish in the end. But the end can be in the future or it can be any trading day.
The upper resistance line and lower support line converge as the pattern matures. Bearish confirmation of the pattern does not come until the support line is broken in a convincing fashion. While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias. However, the series of higher highs and higher lows keeps the trend inherently bullish. The final break of support indicates that the forces of supply have finally won out and lower prices are likely. In a strong stock, price usually finds a support level that exists inside the wedge. I have noticed strong stocks do not fall out as far as a weaker stock will.
No recommendation.
Scared money can equal lost money. Be safe.
Comment:
Bottom trendline of rising wedge, if broken, is at 241ish.