Salesforce.com NYSE:CRM has been on my radar today and according to my studies... CRM is giving off a strong signal according to where the price is relative to the and channel. I drew a few dots on the chart above to highlight the areas of interest so you can see what I look at. The Cyan dot is just to locate the price when it is between the lower and channel, this is the area where I start paying attention for a trade setup. The Magenta dots are for when the price is between the upper and Channel bands and is when I start looking for a trade setup. I use the white dot as an entry signal as price has come back within the channel. White dots following the cyan dots are entry signals, whereas white dots following magenta dots are entry signals. The entry signals are what I consider to be where the stock may begin to change direction.
However, this strategy does generate false positive signals from time to time. As an attempt to avoid false entry signals, I take into account the trend of the stock. The stock has been trending upward the last 90 days with a net change of +33% (based on closing price 06/19/2020). Therefore, based on the indicators and trend, my assumption is that CRM could move higher. Ideally, I would like to see CRM reach $260 per share within the next 14 trading days... but who knows what could happen.
Keep in mind: The days surrounding the outcome of the U.S. election, market fluctuations, and unexpected news events can send CRM in an unfavorable direction. This idea is not a call to action, nor should it be considered investment or trading advice. The ideas expressed on our TradingView page are for educational and entertainment purposes only.
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