Chartology: Salesforce.com Inc. (CRM)

Andrew Nyquist

By Andrew Nyquist
During the back half of 2011, Salesforce (CRM) dropped from a high of 160 to the current lows in the 90’s.  Wow, that’s quite a fall.  But that’s one of the drawbacks to investing in high growth stocks during their initial rocket phase.  But now that the stock has been trimmed by 40%, it’s looking attractive again.  Cloud Computing continues to grow and CRM is uniquely positioned to benefit from this growth.

Technically, the stock is nearing a bounce, and quite possibly a longer term bottom.  On the weekly chart, CRM will record a TD DeMark buy setup this week.  The stock needs a low below 94.09 (bar 7’s low) to perfect the setup.  The initial bounce could last between 1-4 bars/weeks.  On the daily chart, a measured move aligns nicely with DeMark analysis and suggests 90ish. This is on my radar and I’ll be looking to initiate today or early next week.  See annotated charts below.

**Other technical stock charts found here.

Tagged and searchable under “chartology.”

Salesforce.com Inc. annotated daily and weekly stock charts with technical analysis overlay January 5, 2012.  Price Support and Resistance.

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