SalesForce.com (CRM) saw a life-time high in March 2013. The high around $180 came almost two years after the rally had truly ended & the new life-time high was not really something to invest into. The stock remained investment worthy until the mid of 2011 when it made a high of 160 & then topped off hence signalling an exit in August 2011. Since then the stock has been in a constant struggle to reach new highs & has consistently met resistance at higher levels as indicated in the weekly chart.
More recently, just after the new life-time high, the stock was split. This brings to light a new opportunity in the stock, as the stock has signaled a base formation & more recently an investment entry. The stock has signaled an entry at the break of 46.5 which was an important resistance point. It has since then moved up to a recent close above 56.
Support for the stock is at $50, breaking this will end the present trend for the stock, hence it is an important price point to keep track of as of now. Below this the stock does not really have any strong support as of now but 36, 25 & 17 will be support zones, that might develop in the future.
The stock will see strong resistance at 64, 96 & 128.5. The resistance mentioned will also act as target levels. The stock will face a major test around $100 & it will be important for the stock to cross over & hold this level significantly. Any significant reversals from $100 will place the rally in a jeopardy.
SalesForce.com does look very good at present from an investment perspective with a large support at 50.
Bullish on SalesForce.com (CRM)
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