Anticipating CRM's Sell-Off
by Mike Paulenoff
December 5, 2020 • 12:00 AM EST
After Salesforce.com (CRM)'s earnings report late Tuesday, Mike Paulenoff cautioned MPTrader members about the stock, noting:
"CRM beat The Street on Earnings, Revenues, and Raised Guidance, BUT... confirmed buying Slack (WORK) for $27.7 Billion, which continues to give some investors a bit of indigestion. CRM is 4% lower from the 4 PM ET close, pressing down to 230.60, which we see on my attached chart is nearing a full-fledged test of the technically critical 10/30 low at 228.66. The 10/30 low MUST contain any additional weakness to avert triggering a long liquidation event that sends CRM towards 200-190 next."
The stock, which was at 232.75 at the time, went on to break that critical 10/30 pivot low the very next morning -- which, just as Mike had warned, triggered long liquidation that spiked the stock through Mike's next immediate downside target of 220 to a post-earnings low of 215.63.
Mike continued to monitor the stock closely for MPTrader members through the remainder of the week, as CRM attempted to rally above 228-229 but failed to sustain the strength, closing the week at 225.51.
Where to next for CRM?
Join Mike and his MPTrader community in our Member's Room to closely monitor CRM's price behavior next week for a potential bullish technical signal.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts
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