CRM Heavily Oversold Bouncing off Reliable Supports
A quick look at what I'm projecting viewing the hourlies. Seems like Saleforce is bouncing off so strong support.
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EDIT: Not 7-10% but rather $7-$10. I'm expecting it to hit around $230 next week.
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Glancing at the order book there's more than enough buy orders equal to the task, leaning in. I am getting some preliminary sell indicators, but the block of support we're on doesn't make me want to sell.
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So far so good - with an established accumulation zone above 220 mainstream interest in the stock should return Monday / Tuesday.
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Also of note: The maniacs at r/wallstreetbets have latched onto CRM as a play for December. In a surprisingly adequate analysis in this top-rated post for Saturday u/maxfort86 breaks down why CRM is a good buy:
- *Earnings* the average expected EPS was $0.75 per share, the actual number turned out to be $1.74
- *Slack* Salesforce also announced that it's in the process of acquiring Slack (WORK) for 27.7 billion dollars
- *Financials* Salesforce acquires a company for 27.7 billion and its market cap goes down by 40 billion.
- *3 Day Rule* Traders have a "3-Day Rule" according to which they don't touch a stock that has fallen sharply and suddenly for 3 days to let it sink to its lowest and see where it goes from there. Those 3 days for CRM are passed and it seems to be rising.
- *Investor Day* Salesforce Investor day is on Tuesday (Dec 8) in the morning. They will probably clarify the necessity of the slack acquisition and their plans to profitably integrate it into their core business.
*Source*: www.reddit.com/r/wal...our_major_easymoney/
While normally listening to wsb could send you to the poor house, this analysis has some backing. The fact is that Salesforce bought Slack for such a high price tag for a reason, and we do not know what that reason is yet, but I feel confident that everything sold below $250 was unnecessary even at face value.
- *Earnings* the average expected EPS was $0.75 per share, the actual number turned out to be $1.74
- *Slack* Salesforce also announced that it's in the process of acquiring Slack (WORK) for 27.7 billion dollars
- *Financials* Salesforce acquires a company for 27.7 billion and its market cap goes down by 40 billion.
- *3 Day Rule* Traders have a "3-Day Rule" according to which they don't touch a stock that has fallen sharply and suddenly for 3 days to let it sink to its lowest and see where it goes from there. Those 3 days for CRM are passed and it seems to be rising.
- *Investor Day* Salesforce Investor day is on Tuesday (Dec 8) in the morning. They will probably clarify the necessity of the slack acquisition and their plans to profitably integrate it into their core business.
*Source*: www.reddit.com/r/wal...our_major_easymoney/
While normally listening to wsb could send you to the poor house, this analysis has some backing. The fact is that Salesforce bought Slack for such a high price tag for a reason, and we do not know what that reason is yet, but I feel confident that everything sold below $250 was unnecessary even at face value.
Personally, I'm expecting a 7-10% rise over the course of next week.