Disclaimer: not financial advice.
The last earnings established a nice support (green rectangle) and prevented another swing to the downside of -2.0 Standard Deviations (the lowest blue line).
I think we are straddling a few nice lines that will make for a good move real soon.
I also like to watch the Fisher Transform and Stochastics for some confirmation. These both look like they do not want to exit their "overbought" territories, perhaps extending a run upwards.
It feels like a breakout of ATH would be imminent and if so would create a nice squeeze up.
The last earnings established a nice support (green rectangle) and prevented another swing to the downside of -2.0 Standard Deviations (the lowest blue line).
I think we are straddling a few nice lines that will make for a good move real soon.
- The gray rectangle is where we have All Time Highs (ATHs). This has been a safe resistance/selling area in the past. Eyeballs are on this line.
- As described in earlier paragraph, the last ER generated the green trend line of support. This was an important area of support because it also came at the -1.0 Stdev area. In fact, we did not even break it. The most predictable move was probably to the downside and there was enough strength to reverse that trend.
- I like to clone Bar Patterns from past scenarios that looked similar. The red bars were taken from January 2019 when CRM broke to the upside and the red-dotted line (Linear Regression, 500days) became Support. I like how this bar pattern matches up nicely to some resistance at +1.0 Stdevs and support at the green line.
- The bar pattern also runs up to the +2.0 Stdevs line right at the next Earnings. I would say there's a lot more risk to the downside at that date but perhaps something like a Straddle into earnings would make sense.
I also like to watch the Fisher Transform and Stochastics for some confirmation. These both look like they do not want to exit their "overbought" territories, perhaps extending a run upwards.
It feels like a breakout of ATH would be imminent and if so would create a nice squeeze up.
Trade active:
Got our breakout and squeeze up!
I think we'll see a parallel channel that runs from the Highs of November 4th and Nov 21st and the Lows of October 23rd and December 31st. Thinking resistance comes somewhere around the upper green line (parallel channel I just mentioned) and the blue line (which is a LinReg line of +1.0 stdevs, just a likely spot for some initial resistance that we later straddle).
Since about 6:45am PST/9:45am EST there's been consolidation but the Lows keep going up. I think we're about to get another push soon.
I think we'll see a parallel channel that runs from the Highs of November 4th and Nov 21st and the Lows of October 23rd and December 31st. Thinking resistance comes somewhere around the upper green line (parallel channel I just mentioned) and the blue line (which is a LinReg line of +1.0 stdevs, just a likely spot for some initial resistance that we later straddle).
Since about 6:45am PST/9:45am EST there's been consolidation but the Lows keep going up. I think we're about to get another push soon.
Trade closed manually:
I closed my position. I still plan on playing CRM but had to take the big $$ from today's squeeze and monster move up. I was in on naked calls for a strike that, even after today's move, is Out of The Money (OTM).