Salesforce - is it correction time? or is slack to heavy...So CRM bought slack in a fairly expensive price and this caused investors to pull out and run -which is good because the stock needed to retrace and retrace the gap area between 220 -250.
let’s focus on technical :
Stock is moving in a downward trend with no lower highs only lower lows which means we are technically not in a downtrend ! the gap from 25th of August was finally filled and now the stock can keep climbing in a safer manner.
the best part is we are seeing the correction from the drop beginning to correct and it fits our Stoch & ATR but most importantly it fits our POC and volume that indicates price should go back up to 250 (which is where the august gap ended - the wonders of volume never stop :))
So, stock needs to climb up to the 250 and make sure you keep in mind the 270$ line resistance that was tested several times and not broken
To sum up, buy position to the 250$ line then we let it correct down for a day or so and jump back in to the 270$ line
please note this trade is a quick one I assume a rise in Monday morning premarket and once market will open, we will already be halfway there so make sure you are in on time
Happy Xmas and trade safe!
