Looking for a snapback candidate? Try Salesforce ($CRM). (March 17, 2020)CRM
A lot of stuff has sold off, a lot, and Salesforce ( NYSE: CRM ) is one of them, it has lost about 1/3 of its market cap in about a month, that’s quite a bit. I think that at this point this is a buy the dip thing. The stock had a nice reversal today. The first time in a while where the intraday low was higher than the prior day’s intraday low. And the intraday high was higher than the prior day’s intraday high. So we are getting buying here today where we had selling before.
Now, all I am looking at right now for you because we don’t know what tomorrow or the next day will bring, but all I am looking for is a little move up here, maybe $15.00 maybe 10 percent to the upside. I am not saying this stock is going to run up to all-time highs. I absolutely promise that it will run up to all-time highs I just don’t know when. The way this rubber band has been just really stretched and now it is snapping back the other way. I think you have got at least 145.00, maybe another $10.00, possibly 150.00 if the market cooperates.
I think this is what you want to be looking for in this market. If you are actively trading you want to be looking for these stocks that have deeply, deeply oversold and then are now snapping back. That’s a better thing than looking for stocks that are breaking out; because so many stocks that break out these days, maybe it’s on earnings or something, they are sold into because traders are still trying to raise cash. And so we are not really looking at the ones where we think the stock is going to break out.
What we are looking at are the ones where it looks like the stock has just sold off SO much that the real exchange going on is money for stock, that’s the aggressive part as opposed to stock for money where people just want to get out of the stock. That’s what I would look for on Salesforce ( NYSE: CRM ), and maybe put a stop that is maybe 129.00ish or so, just a little under 130.00, give the stock a little bit of room to move. This is a trade that I think could work for you. A very quick swing trade, you’d be out of it by the end of the week.