1CRM trade ideas
CRM - Sales losing the Force..-Since the start of the year tech stocks have taken two legs down, in late February and now, in early May. CRM stock has joined the party both times. It’s down 3% on the year, while the average S&P stock is up 11%.
-It’s due to investors rotating out of expensive stocks and into those benefitting from the end of the pandemic or President Joe Biden’s Administration’s infrastructure plans. Even with this latest fall, Salesforce stock sells at 49 times its earnings. That won’t change at its next report on May 27, with 42 cents of net income expected on $5.89 billion of revenue.
-When the pandemic was on, investors piled into the few names that were making money. Cloud application stocks like Salesforce were among those names. CRM stock peaked at $281.25 per share in late August into early September. Over the last year, you’re still up 32%.
-But there are a lot more places for investors to make money now. You can buy a steel stock like Cleveland-Cliffs (NYSE:CLF). You can buy a cement stock like U.S. Concrete (NASDAQ:USCR). You can even grab a cruise line like Royal Caribbean (NYSE:RCL) and be rolling in profits.
-The light is still on at Salesforce. There’s a succession plan in place, with 42-year old Bret Taylor on tap to replace co-founder Marc Benioff as CEO. Top line growth is still averaging 20%, the company continues to make money.
-Salesforce profits would be higher, except it’s paying a massive $27.7 billion to buy Slack (NYSE:WORK) and compete more closely in office applications. This is not a bad idea. It’s just bad timing right now to go for growth when the market wants margins. That will change and, when it does, Salesforce stock will likely come back.
BOTTOM LINE:
-Tech valuations are compressing. It’s not a mirage. There’s no need to pay 49 times earnings for 20% growth when hundreds of companies are going from loss to profit and, at least in the near term, growing just as fast.
Credit: Dana Blankenhorn
Our Opinion:
We keep our target at around: $185-190
Cloud-computing vs crude oil: Lessons in a Dramatic ChartOne of the biggest events in the history of the Dow Jones Industrial Average happened last August when Salesforce.com replaced Exxon Mobil as an index member. A 21-year software company elbowed out a transnational giant tracing its origins to John D. Rockefeller and the dawn of modern capitalism.
Despite the stunning endorsement, things haven’t worked out so well for CRM since then. Its shares peaked above $280 one week later and then turned lower. (That was a giddy moment for growth stocks because Apple and Tesla had just split their shares.)
Additionally, TradeStation analytics show that CRM has gone 172 sessions without a new 52-week high. That’s the longest for any member of the Dow Jones Industrial Average. XOM, in contrast, hit a new high yesterday.
It’s a good lesson in froth and exuberance: Just when it seems things can never go wrong, it’s often a sign of the top. Other adages that could apply are "buy the rumor, sell the news," or "be fearful when others are greedy."
The chart above compares CRM to XOM since they traded places in the Dow. Notice how XOM lagged for a couple more months but then ripped higher after November 9’s vaccine news ignited the reopening trade.
Switching to CRM's candlestick chart below, some challenging patterns may have emerged. The 50-day simple moving average (SMA) slid beneath the 200-day SMA on March 22, resulting in a “death cross.” Next is the descending channel in place since the peak in early September. If that trend continues, it could imply move toward $180.
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crm baby ik there is a lot on this graph but lets break it down
bull flag yes we all know that
short term cup and handle if this support holds
higher volume today
went to a fib retracement level
bellow the bottom bollinger band
sells on the SAR and super trend but i think those are dip buys in disguise
CRM bueno i think we break out this time
also the RSI is at like 42 i think
CRM going DOOOWWWWNNNthe 4hr EMA line needs to be touched. the line in Blue. so it won't have any momentum to go up until it hits that mark.
Cup and HandleThe handle low is very, very close to mid cup. There would be a lot of support in this zone. Possible stop below this area.
CRM has struggled to break through a channel down. CRM has broken through, just crossing my fingers it does not go back inside.
There is a battle on the handle between the bulls and the bears. A 3 Outside Up candlestick pattern appeared which is bullish, followed by a 3 Outside Down pattern which is bearish.
The 3 outside down pattern occurs when price is moving upward and begins with a green candle. This is followed by a red engulfing candle that has a higher open and a lower close that the previous green candle so the red candle swallows or "engulfs" the green candle. The third candle in this pattern has a lower close than the preceding 2 candles.
A 3 outside up pattern (bullish) is opposite, and the first candle is a red candle followed by a green engulfing candle, and finally a candle with a higher close.
Bearish candle patterns do best in a bear market and bullish candles do best in a bull market. There are some candles and candlestick patterns that are stronger than others, but the often short term signals they give can help with entries and exits.
No recommendation
Sell SALES?We seem to have a lovely kijun bounce on the weekly and all roads lead to 200. The monthly however closed on a bullish note so i would reduce my size on this one.
Entry: 229.48
TP: 201.00
SL: 241.00
R: 2.47
Position size should be reduced!
Crm , 1 final hurdle Not going to do a big chart of CRM since there are dozens of them in ideas. Found some resistance that's been stagnating the break last 2weeks. Starting to form a Inverted H&S in the RSI. Needs some volume here to push through. Today's resistance is 239, a move to 240 would be considered a breakout.
CRM long target my gold boxGreat volume backing price action.
Obvious profit taking point.
Will be looking at the gold box for target.
Buy $CRM - NRPicks 07 MarSalesforce.com, inc. develops enterprise cloud computing solutions with a focus on managing customer relationships around the world.
Last week announced quarterly results that exceeded expectations, producing revenue growth to keep the company at the pace of CEO Marc Benioff's goal of $35B by 2024.
Salesforce generates healthy free cash flow, more than 19% free cash flow margin last year, even when Benioff and the company increased spending during the pandemic.
Technical:
Low levels of RSI- Oversold
Price below MA20,MA50,MA100 andMA200
CRM chart looks really nice hereAdded the $CCI chart as a comparison, the setups are pretty much identical. WIll be watching for break of weekly bull flag
CRM (Salesforce) - Bullish push to quarter endSalesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. The Salesforce Platform, the world's first on- demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. The Salesforce Platform allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange directory. Customers can also take advantage of Successforce, salesforce.com's world-class training, support, consulting and best practices offerings.
Strong sales and EPS Growth Quarter-on-Quarter
Positive trends emerging on Heiken Ashi and MACD's
Should see a push to previous recent highs at and above $250 mark
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Do your own research, and good luck!
CRM Setting up to break this downtrend. After gapping up CRM has moved in this downward channel. If we can clear this 235 level CRM could make a run back to ATH level.
