Watching for a breakout in $CRM- July 5, 2023
This is Scott with your Chart of the Day. I want to take a look at Salesforce ( NYSE: CRM ).
As you can see, Salesforce ( NYSE: CRM ) is not as extended as a lot of other stocks in this market. We’ve seen some pretty big moves in some stocks, and Salesforce ( NYSE: CRM ) is really just kind of been going sideways this last month or so, right around the 50-day moving average.
You can see the price is just over 3 percent from where the 50-day moving average is. Now, that gives me a little solace in terms of the breadth of this market. Because while the fear and greed index is pretty high in terms of greed, we are still seeing stocks just base and go sideways. And that tells me that the breadth is really improving in this tape.
And so what I want to see from Salesforce ( NYSE: CRM ) is a breakout. I want Salesforce ( NYSE: CRM ) to catch up to some other stocks in this market, as it has just kind of been going sideways and building this nice downward-sloping trendline, and clear support, like I mentioned, right around that 50-day moving average.
So we have some price consolidation, and I want to see a move through that level coming on higher than average volume. Now, I think the real breakout point is right around that 217.90 level. But I think you can probably get a little stock started around this moving average and then add if it confirms higher.
Now, I currently don’t have a position in this stock, I’m not pumping it or anything like that. It is just a setup that I came across, that I wanted to share with you. And I think it has the potential to break out higher.
So I want to set an alert on my software right around that 217.90, maybe just under 218.00. And then that will tell me that the stock is ready to move out of this consolidation zone that it has been in for most of the month of June.
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