Tracking CRM's Price Path
by Mike Paulenoff
January 23, 2021 • 12:50 PM EST
On Thursday of this past week, Mike Paulenoff alerted MPTrader members of a long set-up in CRM (salesforce.com), writing:
"After making yet another new multi-month corrective low at 212.98 last Friday, CRM has turned up and has climbed above initial resistance at 219.50-220.00, which triggered an initial 'long alert' in my work."
Mike added: "My work argues that CRM has turned up, and has triggered a preliminary buy signal. Only a sharp downside reversal that violates the Jan 15th intraday low at 212.98 will invalidate the signal."
Mike had been tracking CRM in the MPTrader Trading Room for the past 7 weeks, as it progressed towards completion of a major correction.
On Friday morning, he followed up, noting: "CRM is following my preferred technical price path, turning up from last Friday's low at 212.98 towards a challenge of 223-225, which if (when?) hurdled, will confirm the conclusion of the entire Sep-Jan correction (284.87 to 212.98), and the initiation of a potentially very powerful new upleg."
As it turned out, Goldman Sachs on Friday upgraded CRM to a "Buy," with a target orice of $315, and the stock reached an intraday high of 227.79 before closing at 225.77.
Is CRM poised for upside continuation after a completed multi-month correction?
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